The settlers set fire to several homes and cars in one of the largest attacks by settlers this year.
At least one Palestinian man was killed by gunfire in the village of Al-Mughayyir, east of Ramallah, according to the head of the village council Amin Abu-Alia, who is related to the deceased.
About 25 others were also injured in the rampage, according to the Palestinian Ministry of Health in Ramallah, the scale of which has not been seen since hundreds of settlers stormed through the villages of Turmusayya and Huwara in two separate incidents last year.
According to Abu-Alia, Israeli security forces had informed Palestinian officials that the settlers were looking for an Israeli teenager who had gone missing earlier in the day.