The fighting has left at least 33 Palestinians dead in Gaza, while Palestinian rocket fire into Israel has killed two people, one Israeli and one Palestinian working in the country.
Israeli officials claim that they have struck PIJ targets in Gaza, while PIJ fighters fired barrages of rockets at southern and central Israel.
According to the Israeli military, at least 1,234 rockets and mortars have been fired from Gaza, with 976 crossing into Israeli territory. Most of the rockets have been intercepted or landed in open areas, but some have hit homes and other buildings. The military has also carried out air strikes on 371 PIJ targets across Gaza.
About half of the 33 people killed in Gaza were civilians, including seven children and four women, according to local health officials. The Israeli military has denied targeting civilians.
Israel has been targeting leaders of Islamic Jihad, the second-largest militant group in Gaza after Hamas, with airstrikes in the past week. The group has fired hundreds of rockets into Israel.
According to Palestinian health authorities, at least 34 Palestinians have been killed in the recent violence, including 14 civilians, including children. One Israeli was also killed when a rocket hit an apartment in the town of Rehovot.
The ceasefire agreement was announced on Saturday, with a text from Egyptian intelligence seen by the BBCstating that both sides have agreed to stop actions targeting civilians and other individuals. PIJ has confirmed the ceasefire and says it will abide by it as long as Israel does the same.
Despite the fighting that continued after the ceasefire was supposed to start, Israeli Prime Minister Benjamin Netanyahu's office issued a statement confirming the agreement and thanking Egypt for its "intensive efforts" to secure it.
The statement also said that Israel had made clear that its acceptance of the ceasefire meant that "quiet will be met with quiet, and that if Israel is attacked or threatened, it will continue to do everything that it needs to in order to defend itself".
Israel and Palestinians agree to ceasefire after five days of violence
The ceasefire between Israel and PIJ militants in Gaza offers some hope for an end to the recent violence. However, the shaky start to the truce and the ongoing tensions in the region make it difficult to predict how long the ceasefire will hold.
The situation highlights the need for continued efforts towards a lasting peace agreement between Israelis and Palestinians.