IDF Sgt. Ronen Lubarsky, 20, from the central city of Rehovot, who was critically wounded Thursday during an operation near Ramallah, succumbed to his wounds on Saturday.
Lubarsky, a soldier with the elite Duvdevan counterterrorism unit, sustained mortal injuries when a marble slab was dropped on his head during an arrest raid of terror suspects in the al-Amari refugee camp.
He was rushed to Hadassah Ein Kerem Hospital in Jerusalem where doctors fought to save his life, but to no avail.
A manhunt is underway in search of the terrorist responsible for the lethal attack, the military said.
Lubarsky, who was posthumously promoted to the rank of staff sergeant, was laid to rest late Saturday night at the Mount Herzl Military Cemetery in Jerusalem. He was the first member of the elite Duvdevan unit to be killed by a terrorist during operational activity, Israeli media reported.
Prime Minister Benjamin Netanyahu sent his condolences to Lubarsky's family, vowing that "our security forces will get this terrorist and the State of Israel will bring him to justice."
Defense Minister Avigdor Lieberman said, "On Saturday, we lost Duvdevan soldier Sgt. Ronen Lubarsky, who was critically wounded during an operation to arrest wanted terror suspects. The heinous terrorist who harmed him will not have a moment's peace and we will get our hands on him, dead or alive."
Lieberman also extended his condolences to Lubarsky's family and said his office was "closely monitoring the efforts to apprehend this terrorist. We will make sure justice is served for Ronen."
President Reuven Rivlin said he had spoken to Lubarsky's parents when the soldier was still fighting for his life in the hospital, and had sent prayers for his recovery. "Today, however, we are greatly pained to send our condolences as we share in this great tragedy."
Rivlin offered a message of "strength to the wonderful fighters and commanders of his unit, the best of our young men, who venture out every night on operations that ensure that we are able to carry on with our day-to-day lives in safety."
Hundreds of family members, friends and soldiers attended Lubarsky's funeral.
"My dear brother, how did we get here, to this strange situation?" Lubarsky's brother Arik eulogized. "They say free will is the strongest human characteristic. And you had will. Your entire life, you fought to get through all the closed doors. Wherever you heard the word 'no,' you said 'yes,' and you were better than everyone else. In school, in soccer and eventually, in the military."
"I am sure you chose this moment, too. I have no doubt. I know you did not suffer and I am very proud of you," he said.
Duvdevan Commander Lt. Col. A. praised Lubarsky as "the son of a family of fighters, the salt of the earth. While we prayed at your bedside in the hospital, your mother pointed at members of the family and said, 'They're all fighters, but Ronen is the best.' Your mother was right. You were among the finest fighters in the unit."
Lubarsky's friends described him as "a perfectionist" and "highly ethical," saying he was a true friend who was always willing to help others.
They said he had always planned to join one of the IDF's elite units and was thrilled to be accepted to Duvdevan.