Israeli airstrikes against Syrian military posts in the Golan Heights left one Syrian soldier dead and seven wounded.
Wednesday's attack is the most serious the two countries have seen since the beginning of the Syrian civil war three years ago.
The strike came in response to a roadside bombing that wounded four Israeli soldiers.
It's still unclear who was behind the blast, but Israeli Defense Minister Moshe Ya'alon said he holds the Syria's government responsible.
"Whoever dares strike us -- his blood be on his own head," Ynet News quoted Ya'alon.
"We hold the Assad regime responsible for what happens in its territory and if it continues to collaborate with terrorists striving to hurt Israel then we will keep on exacting a heavy price from it and make it regret its actions," he warned.
Meanwhile, in a statement, the Syrian army warned Israel against repeating what they called a "hostile act."
"We're warning [Israel] of desperate attempts to bring to an escalation of the situation," the statement read.
"[Such] hostile acts … endanger the security and stability of the region," the army said.