"We`ve found two explosion sites in the city, we`ve also closed off the airport as a precaution," police spokesman Micky Rosenfeld told AFP, saying one landed in "an open area close to one of the neighbourhoods."
He said the sirens had sounded but that there were no initial reports of casualties. "Bomb disposal experts are searching the area," he said.
Rosenfeld said a number of explosions were heard but he could not say from where rockets were fired.
Israeli media said the army had recently deployed a battery of the vaunted Iron Dome anti-missile system in the vicinity of Eilat.
The Red Sea port city lies on the northernmost point of the Gulf of Aqaba, a narrow stretch of water bordered on one side by the Sinai and the other by Saudi Arabia and Jordan.
Last April, a rocket fired from Sinai hit Eilat but caused no casualties, with police finding another unexploded rocket near the city several days later.
In August, another two blasts rocked the city, again injuring no-one with police unable to find any evidence or shrapnel.
That attack was claimed by an Islamist group calling itself Ansar Jerusalem which said it had fired two Grad rockets at the city.