Some 120,000 people descended on the Al-Aqsa Mosque compound, which dominates the Old City in Jerusalem, officials said on Friday.
There were minor scuffles between worshippers and Israeli police controlling the entrance to the mosque, which is the third holiest site in Islam.
Adli al-Agha, 53, from Jerusalem, told the AFP news agency that many people “had to flee dawn prayers” after Israeli police deployed a mini-drone spraying tear gas to disperse worshippers.
Friday marked Laylat al-Qadr (“The Night of Power”), considered the holiest night of Ramadan, which commemorates the moment the Quran was first revealed to the Prophet Muhammad.
It is the night when Muslims believe their prayers are most likely to be granted, a festive moment while children stay up late and shops stay open till the small hours.
But many Palestinians are not in the mood to celebrate and are praying for an end to the war in Gaza after almost six months of bloodshed.
Sameeha al-Qadi, 55, who had come from near Bethlehem, said Jerusalem “is sad and has lost its light – we all feel what is going on in Gaza. We can’t escape it for a minute”.
This year there are few Ramadan decorations or lights in the Holy City, with Palestinians instead having a bitter coffee and a date – traditionally to mark mourning – on Tuesdays and Wednesdays, when feasts are usually held.
“There is sweet nothing about the feast this year. People are not celebrating,” said Sabah, 54, some of whose relatives have been killed in Gaza. “Everything is bitter in my mouth. It is so painful at this time which is all about family.”
In Rafah, in the southern Gaza Strip, Palestinians gathered on Laylat al-Qadr, praying in and outside a tent they had built near the debris of al-Faruq Mosque – now reduced to ruins by Israeli air strikes.
People also gathered to pray within the surviving section of the Great Omari Mosque in Gaza City. Also known as the Great Mosque of Gaza, the largest and oldest mosque in the strip was destroyed by Israeli military bombardments. Despite its destruction, the mosque remains a favoured venue for residents of the region to gather for prayers.
Palestinians displaced from their homes in Gaza for almost six months by Israeli attacks have observed Ramadan in makeshift tents, under limited means and difficult conditions. Many are spending the last days reading the Quran or decorating their tents for Eid.