The Israeli Defence Force (IDF) has deployed the anti-rocket system, the Iron Dome, for the first time in Beersheba, southern Israel.
The $200m system has been deployed to protect Israel's civilian population from rocket and mortar attacks from Gaza militants.
Israeli officials said that the system is still in its experimental stage and cannot be relied upon to provide complete protection from rocket attacks.
Israeli Defence Minister Ehud Barak said the Dome will not be used consistently and will be moved around according to operational needs.
"The system can fire back if fired at but it's important to remember that the Dome is still not fool proof," he added.
The Iron Dome system can intercept short-range rockets with moderate small warheads, fired from a distance of 4.5km-70km, and can protect an area as large as 10x10km against rockets and mortar shells.