Israeli forces have ended a six-day siege in a Gaza refugee camp that left at least 42 Palestinians dead, destroyed dozens of homes and sparked international outrage.
But as the last soldiers withdrew from the Rafah camp late on Monday, the military said it would return to destroy weapons smuggling tunnels as deemed necessary.
Wary residents venturing out in Rafah's Tel Sultan and Brazil districts begged for water as they confronted demolished homes, flattened greenhouses and torn-up streets flowing with raw sewage after Israeli tanks rumbled out.
The army said its forces had withdrawn after destroying three weapons-smuggling tunnels in the camp, but Israeli media outlets said the operation was cut short after military officials concluded it was not meeting its objectives.
The army also lifted a blockade that had cut Rafah off from the rest of the Gaza Strip for nearly a week, saying it was easing conditions for the beleaguered population.
Israel began the Rafah operation after 13 soldiers were killed in ambushes. The army said its goal was to root out militants and shut down tunnels used to smuggle arms across the border from Egypt.
Israeli Prime Minister Ariel Sharon lobbied hardline ministers over a gradual Gaza pullout plan he intends to put to a cabinet vote next week.
Mr Sharon said on Sunday he was determined to push through a step-by-step plan to withdraw from Gaza and several of the 120 West Bank Jewish settlements despite his right-wing Likud party's rejection of the pullout in a May 2nd referendum.
Violence has increased in the Gaza Strip since Sharon introduced his unilateral "disengagement" strategy and won US backing for it. Militants want to declare victory in any Israeli pullout but the army is determined to destroy them before leaving.
Political sources said Mr Sharon would present an amended plan for a four-stage evacuation of 7,500 Jewish settlers, who live in heavily guarded Gaza settlements amid 1.3 million Palestinians, at the next cabinet meeting scheduled for May 30th.