It is one of the bloodiest attacks in Israel in a year of war.
The Lebanon-based Hezbollah militant group claimed responsibility for Sunday's strike, saying it targeted a military camp.
Hezbollah said the strike was retaliation for two Israeli strikes in Beirut on Thursday that killed 22 people.
Israel's advanced air defence systems mean that it is rare for so many people to be hurt by drones or missiles. Israeli media reported that two drones were launched from Lebanon, and Israel's military said one was intercepted.
It was not immediately clear whether military members were hurt or what was hit in the city of Binyamina. There were no details from Israel's military, which earlier reported that at least 115 rockets were fired from Lebanon.
It was the second time in two days a drone has struck in Israel. On Saturday, during the Israeli holiday of Yom Kippur, a drone hit in a suburb of Tel Aviv, causing damage but no injuries.
The strike came on the same day the United States announced it would send a new air-defence system to Israel to help bolster its protection against missiles.
Israel is now at war with Hamas in Gaza and Hezbollah in Lebanon - both Iran-backed militant groups - and is expected to strike Iran in retaliation for a missile attack earlier in October, though it has not said how or when. Iran has said it will respond to any Israeli attack.
A year into the war with Hamas, Israel continues to strike what it says are militant targets in Gaza nearly every day.Â
One strike in Gaza late on Saturday hit a home in the Nuseirat refugee camp, killing parents and their six children, who ranged in age from eight to 23, according to health authorities.
Israel's bombardment and ground invasions of Gaza have killed more than 42,000 Palestinians, according to Gaza's Health Ministry, and left much of the territory in ruins.
At least 2255 people have been killed in Lebanon since the start of the conflict, including more than 1400 people since September, according to Lebanon's Health Ministry, which does not say how many were Hezbollah fighters.
At least 54 people have been killed in rocket attacks on Israel, nearly half of them soldiers.
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