Abdullah Mohammed al-Shuhri, 28, was shot in the chest in Khuza'a, near the town of Khan Younis, on Thursday, Ashraf al-Qudra, spokesman for Gaza's health ministry, said in a statement.
The six-week anti-Israel protest in Gaza, known as the "Great March of Return", started on March 30, and is expected to peak on May 15. Over 100 injured by Israeli sniper fire.
Organisers call the rolling protests the Great March of Return.
Rights groups accuse Israel of wanton use of live fire. "As additional protests are planned for the coming days, the Israel Defense Forces should exercise restraint and respect the rights of Palestinians to peacefully protest".
Demonstrators have gathered at tent camps along the border every day since the protests began on March 30 marking the Land Day, but the higher numbers have protested on Fridays.
Israel blames Hamas and Islamic Jihad for the violence, and has said those killed were "known terrorists".
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Friday's demonstration is the third consecutive week Israeli snipers have opened fire on unarmed Palestinian protesters in Gaza. Conricus said Friday that the military is trying to minimize Palestinian casualties, but hadn't changed open-fire regulations.
Hundreds of Palestinians are allowed into Israel from Gaza each year for medical treatment, however the Israeli government does not allow the entrance of those it deems security risks or who have taken part in action against Israel.
The ministry says 406 demonstrators suffered other types of injuries Friday, including being hit by rubber-coated steel pellets and being overcome by tear gas.
The AFP has reported one man, 36-year-old Sumaya Abu Awad, saying "I have no fear of dying because there is no life in Gaza". Israel says snipers only target the main "instigators".
At five spots along the frontier, tent complexes have been erected hundreds of metres from the border where families have gathered.
Gaza leaders have planned the so-called Marches of Return to culminate in a million-strong march in mid-May, to coincide with Israel's 70th Independence Day, the opening of the USA embassy in Jerusalem, and Nakba Day - when the Palestinians mark what they call the "catastrophe" that befell them with Israel's creation.
"We applaud Israeli human rights groups that are calling on Israeli soldiers to resist such illegal orders from their superiors, and are urging IDF forces to fully comply with worldwide law and exercise utmost restraint in their use of deadly force".