The IDF announced that Sergeant First Class Sivan Wail, 20 from Raanana, died on Sunday after being wounded in battle on Friday.
He served in the Egoz Unit of the Commando Brigade.
Wail was wounded in the battle in which Sergeant Major Alon Kudriashov, 21, from Modiin, a soldier in Egoz as well, was killed.
16 soldiers, six of them from the unit, were wounded during the intense battle after terrorists fired RPGs on the building where the forces were standing.
The incident occurred at around 10:00 a.m. on Friday when an RPG that a terrorist fired hit the top floor of the building where the Egoz force was, in the al-Amal neighborhood in western Khan Yunis.
A large force of soldiers, led by Search and Rescue Unit 669 and Air Force rescue helicopters, conducted a complex and speedy rescue mission