Residents of the al-Arrub refugee camp told the Palestinian news agency Ma'an that Israeli troops entered various homes and hauled in the detainees, who included some children.
"We still don't know the exact number of detainees, because from time to time the Israeli forces release a few of those detained since dawn," Abu Khayran, a spokesman for the local popular committee, told Ma'an.
The raid was in response to the firebombing of what Ma'an described as a military tower. No Israeli casualties were reported but the tower was damaged.
An Israeli military spokesman confirmed the arrests and said its troops and border police faced a barrage of thrown rocks while they carried out their search for suspects.