Fighting broke out near a water source for the Palestinian village of Nabi Saleh, and residents of the Halamish settlement fired gunshots into the air.
An Israeli army spokeswoman said one settler was lightly wounded in the clashes after Palestinians tried to block the access road to the settlement.
"Security forces intervened and dispersed the Palestinian protesters," she said.
Nabi Saleh has for years been a flashpoint in the Israeli-Palestinian conflict.
Each Friday, Palestinians, foreigners and some Israelis protest in Nabi Saleh against the expansion of the nearby Halamish settlement.