A number of blasts were heard in the southern city Eilat on Monday evening.
Israel Police, Border Police and IDF sources were sent to the area to investigate the source of the blasts, an army spokeswoman said.
While Israeli media reported two Grad rockets were found in and around Eilat, the police said no rockets had been found and that searches will resume in the morning.
No injuries or damage were reported.
The southern resort city was previously attacked with rockets fired by Islamist militants from the Sinai Peninsula.
In August 2013, the Iron Dome intercepted a Grad rocket that was fired at Eilat.
In April 2013, two rockets landed in Eilat, one of which fell in a residential area and caused minor damage. At the time, Prime Minister Binyamin Netanyahu said the terrorists firing the rockets were likely members of a terrorist cell that left Gaza and used Sinai in order to attack Eilat.