Border Police officers operating in the Palestinian town of al-Ram north of Jerusalem early Wednesday morning opened fire on a vehicle that officers said was accelerating toward them, killing one Palestinian passenger.
He was identified as Anwar al Salaimeh, 22.
A second person in the car was wounded. A third was unhurt, and was arrested by police and taken for questioning.
One of the border policemen opened fire, according to the army, after he “felt in danger.”
An IDF statement said the incident was being investigated.
The family of Salaimeh, a newlywed, agreed to an autopsy.
The operation uncovered a weapons workshop in the town, the army said. Security forces have launched a major crackdown on underground arms workshops in the West Bank, closing 16 since the start of the year, according to the IDF.
Separately, 13 Palestinians were arrested overnight, including one Hamas activist near Tulkarem.
A wave of Palestinian attacks in Israel and the West Bank since October last year has killed 37 Israelis, two Americans, an Eritrean and a Sudanese.
At least 215 Palestinians have been killed, most of them while carrying out knife, gun or car-ramming attacks, according to Israeli authorities.
Others were shot dead during protests and clashes, while some were killed by Israeli airstrikes in the Gaza Strip.
AFP contributed to this report.