A man in his thirties was shot and killed in the northern town of Umm al-Fahm Sunday morning, according to police.
He was rushed to Haemek Hospital in Afula, where doctors pronounced him dead.
A second man was hit in the shooting, and was in moderate condition at Haemek. The second man is also in his thirties.
Police have opened a murder investigation and launched a manhunt for the shooters.
There was no immediate word on the suspected motive for the shooting, or whether both men were the targets.
Recent months have seen a wave of killings and crime in the Arab Israeli community. Arab leaders say police largely ignore the violence in their towns, which include family feuds, mafia turf wars, domestic violence and so-called honor killings.
An 84-year-old woman was shot dead on Wednesday in the Arab Israeli city of Taibe, apparently mistakenly hit in an attempted drive-by shooting, as she was walking in the street, police and medics said.
An initial investigation found that the woman was mistakenly hit by a burst targeting another person, the Haaretz daily quoted a police source as saying, adding that both the assailants and the target had managed to flee the scene.