The soldier was staying at a rehabilitation centre in Ashkelon when he opened fire after waking up from a nightmare.
An Israeli soldier recently returned from Gaza injured members of his unit when he woke up from a nightmare and began firing a weapon, Israels Channel 12 reported on Wednesday.
The soldier was staying at a resort in Ashkelon in southern Israel that is being used by the military for rehabilitation purposes when the incident happened.
The soldier opened fire on a wall, injuring an undisclosed number of soldiers who suffered shrapnel wounds, according to the Jerusalem Post.
The incident was referred for investigation to Israels Ministry of Defence, however it was decided that no further action would be taken due to the soldiers psychological state.
Earlier this month, Israeli daily Haaretz reportedthat 18% of soldiers participating in the invasion of Gaza are suffering from mental health problems and post-traumatic stress disorder (PTSD).
The report cited figures given at a Health Warfare Commission hearing by Limor Luria, the head of the Israeli Defence Ministry rehabilitation department.
Footage posted online have shown the intensity of street-to-street fighting in Gaza, where at least 164 Israeli soldiers have been killed.
A report from Israel's Ynet News earlier this monthsaid over 5,000Israeli soldiershave been injured since the beginning of thewar on Gaza, with 2,000 officially recognised by Israels Ministry of Defence as disabled.
The Israeli government has been tight-lipped about the extent of army casualties during the invasion of Gaza, with accusations of awartime crackdown on the free pressby thefar-right government of Benjamin Netanyahu.
Numerous reports of soldiers suffering from mental trauma after participating in Israel's brutal assaults on the Palestinian territories have emerged over the years, with soldiers claiming they are not adequately supported by the government.
In August, Israeli soldier Bar Khalaf set himself on fire amid a dispute with the Israeli Defence Ministry over his disability status. Khalaf served in Israel's 2014 assault on Gaza, later claiming that he had suffered PTSD from his experience.