Muhammad Gharghun, a 23-year-old, was ripped apart by an Israeli tank shell hours after Ibrahim al-Farra, 19, was killed by a shot to the stomach, medical sources said on Saturday.
Nine other Palestinians, including at least four resistance fighters, were killed on Friday after tanks supported by helicopter gunships stormed into Khan Yunus camp.
At least 50 other Palestinians have been wounded during the attack, which began late on Thursday night after rockets were fired at illegal Jewish colonies in northern and southern Gaza.
Israeli bulldozers razed houses in the camp, forcing hundreds of people to take refuge at a nearby stadium or with friends away from the frontline, Aljazeera's correspondent reported.
Palestinian resistance forces continued to confront the Israeli operation.
The Izz al-Din al-Qassam Brigades and Ahmad Abu al-Rish Brigades fired many al-Qassam and Sumud 1 rockets at Israeli settlements in the northern and southern Gaza Strip on Friday night and early on Saturday, the correspondent said.
UN aid arrives
United Nations aid arrived on Saturday at a school in Khan Yunus where hundreds of Palestinians have sought shelter.
The latest raid on the Khan Yunus
refugees has killed at least 11
Families and children unloaded packs of blankets and mattresses delivered by a UN truck.
The aid is being given through UNRWA, the UN Relief and Works Agency, which carries out relief programmes for Palestinians.
Dozens of people also sought refuge in a hospital.
The latest deaths brought to 4634 the overall toll since the September 2000 outbreak of the Palestinian intifada, including 3591 Palestinians and 968 Israelis, according to an AFP count.