Welcome to the new normal. Terrorists are now using the nearly unpatrolled Sinai to lauch attacks into Israel.
A Grad rocket has landed in the southern Israeli city of Eilat, but has caused no damage or injuries, Israeli security officials said.
District police chief Ron Gertner told Israeli radio the rocket had been fired from Egypt's Sinai peninsula.
He said it struck a construction site close to a residential area shortly after midnight (21:00 GMT).
The blast took place as thousands congregated in the resort town for the Jewish holiday of Passover.
Rocket attacks from Egyptian soil are uncommon. Attacks on Eilat and the nearby Jordanian town of Aqaba in 2010 killed one person and injured another four.
Eilat Mayor Meir Yitzhak-Halevy told the Jerusalem Post that the city would function as normal despite the attack.
A wave of unrest has hit the restive Sinai peninsula recently.
Israel says militants have become active in the region since former Egyptian President Hosni Mubarak was overthrown in February 2011.
In August 2011, an armed group crossed the border into Israel from the Sinai peninsula and killed eight Israelis.
Part of the Egypt-Israel peace treaty calls for Egypt to patrol the Sinai and prevent such attacks. Since the fall of Mubarak, the Egyptian army has seemed uninterested in what's going on in the Sinai and Hamas has moved into the area and is receiving help from the Bedouins.
The difference, of course, is that any Israeli response is likely to set off a reaction in Egypt similar to what happened after the August, 2011 incident where the IDF shot and killed several Egyptian police in pursuit of the terrorists. Egyptians rioted, broke into the Israeli embassy, tore down the Israeli flag, and threatened the lives of several diplomats, including the ambassador. American intervention with Egyptian authorities, who stood by during the riot, probably saved the ambassador's life.
Israel is now building a wall along the border but it won't be finished for a while, and walls won't stop Hamas from using the Sinai as a launching pad for its missiles.
As with the West Bank and Gaza, Israel will take only so much - and then respond. Wars have been started with less cause and the Egyptians would be smart to get control of the Sinai in order to prevent a catastrophe.