Air raid sirens were heard throughout the city today, and witnesses said they saw a stream of smoke in a Jerusalem suburb.
A police spokesman says the rocket landed in an open area near a collection of Jewish settlements.
Jerusalem is about 50 miles from the Gaza border, and it had been thought to be beyond the range of Gaza rocket squads.
A spokesman for the Hamas militant wing said the group was sending a message -- that there's no place that is safe, anywhere in Israel.
But the targeting of Jerusalem is a gamble for the militants. The area where the missile hit is near the Palestinian city of Bethlehem, and just a few miles from the Al-Aqsa Mosque in Jerusalem's Old City, one of Islam's holiest sites.
And hundreds of thousands of Palestinians live in Jerusalem and nearby areas of the West Bank.