Ahmed Jahajha, 21, and Hikmet Hamdan, 29, were both shot dead by Israeli forces before dawn on Wednesday morning. While inside the camp, Israeli troops clashed with youth, according to locals.
Mona Sabella, legal research and advocacy coordinator for the Al-Haq human rights organisation, said that Israel's raids on refugee camps in the West Bank "put at risk the Palestinian civilian population".
An Israeli army spokesman confirmed the deaths, adding that Hamdan was shot dead as he tried to ram his vehicle into Israeli soldiers during a raid to "make an arrest and confiscate weapons" in the refugee camp.
Three Israeli forces wounded by fire shot by other Israeli soldiers directed at the Palestinians youth.
Tensions have boiled over on a near-daily basis in recent months, as Palestinians continue to protest Israel's ongoing occupation and an uptick in Israeli incursions into occupied East Jerusalem's al-Aqsa Mosque compound, the third holiest site for Muslims.
Since October 1, Israeli forces have killed at least 121 Palestinians, including unarmed protesters, bystanders and suspected fighters. Meanwhile, 22 Israelis have been killed by Palestinian.
Last month, Amnesty International condemned Israel's use of extrajudicial killings.
"Israeli forces have a long history of carrying out unlawful killings in the occupied Palestinian territories, including extrajudicial executions,"
In a separate incident, Israeli bulldozers razed a Palestinian home and arrested three people in the West Bank city of Hebron, according to local Arabic-language media reports.
The home belonged to the family of Abdelmohsen Hassouneh, a 21-year-old Palestinian who was killed by Israeli forces on Monday while allegedly attempting to ram his car into a group of Israelis. At least 14 Israelis were injured during the incident