Defying heavy police resrictions, hudreds attended the funeral of Palestinian Mu'taz Hijazi, who was killed by police after allegedly shooting far-right Jewish activist Yehuda Glick in the Jerusalem neighbourhood of Abu Tor.
Authorities had originally said only 45 people could attend the funeral, but mourners broke through police barriers to attend the service.
Meanwhile, authorities told the Hijazi's family their home would soon be demolished and they'd be left homeless.
The funeral came as al-Aqsa compound was reopened by Israeli police on Thursday evening, after being closed for the first time since 1967 in light of the killing of a Palestinian and attempted killing of a far-right Jewish rabbi, as reported by the AFP.
Israeli Police spokesperson Luba Samri told AFP the shrine would open early Friday "for dawn prayers, after midnight" following this week's unrest and subsequent compound closure.
Tensions have surged through Jerusalem this week since the Israeli clampdown at al-Aqsa, whose grounds are considered holy to both Jews and Muslims.
Authorities said the move was aimed at calming tempers, and its reopening carries more stipulations.
Amid fears of further unrest during Friday midday prayers, police said entry for Muslim men would be restricted to those over 50, but no restrictions were placed on Muslim women.
Thursday's closure incited Arab and US calls for Muslim worshippers to be allowed access, and Palestinian president Mahmud Abbas called the move an Israeli "declaration of war".
Following months of almost daily clashes between Palestinians and Israeli police in Jerusalem's occupied eastern sector, the Aqsa unrest reached a boiling point following Wednesday night's wounding of the rabbi and the subsequent killing of the suspected Palestinian gunman.
Earlier Thursday, State Department spokeswoman Jen Psaki said that the Haram al-Sharif, which contains the mosque, “must be re-opened to Muslim worshippers,” and called for peace amid heightened tension on both sides.
“It is actually critical that all sides exercise restraint, refrain from provocative actions and rhetoric and preserve the status quo on the Haram al-Sharif/Temple Mount in word and in practice," she said.
According to officials from the Islamic Waqf which administers the compound, Thursday's closure was the first since Israel seized Arab east Jerusalem during the 1967 Six-Day War. The site has been highly sensitive since then, as it represents a holy place for both Palestinian Muslims and Israeli Jews.
Muslims see al-Aqsa represents the world's third holiest site while Jews refer to the area as Temple Mount, believing it to be the site of two Jewish temples in ancient times.
In September 2000, a visit to the site by controversial Israeli politician Ariel Sharon sparked what later became known as the "Second Intifada," a popular uprising against Israeli occupation in which thousands of Palestinians and Israelis were killed.
