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It was unclear if a third Palestinian was killed. Palestinian officials said one Palestinian was taken into Israeli custody. Military spokeswoman Libby Weiss said troops had made no arrests at the scene.
Hundreds of Palestinians threw firebombs and rocks at Israeli forces while they were demolishing the home, and troops fired rubber bullets, tear gas and stun grenades to disperse the protesters, the military said.
The latest killings come amid a wave of Israeli-Palestinian violence in the last two months. Palestinian attacks, mainly stabbings, have killed 14 Israelis, and at least 83 Palestinians have been killed by Israeli fire, including 53 Israel says were involved in assaults. The rest were killed in clashes with security forces.
In recent days, Israel has renewed a policy of demolishing homes belonging to Palestinians accused of carrying out deadly attacks against Israelis. On Saturday, Israel demolished three homes in the West Bank belonging to attackers who killed an Israeli couple in front of their children in the West Bank on Oct. 1. Also that day, the military demolished a fourth home belonging to a man who killed an Israeli on his way home from a basketball game.
Israel says home demolition is a legal and effective tool to deter attacks, but critics say the tactic amounts to collective punishment.
Associated Press Writer Daniel Estrin in Jerusalem contributed to this report.