The violence erupted near the town of Bethlehem between a crowd of stone-throwing Palestinians and Israeli troops.
"Hundreds of rioters hurled rocks at the security forces in the area," an Israeli military spokeswoman said. "Due to the extent of the violence, border police fired 0.22 calibre rounds towards a main violent instigator, resulting in his death."
Israel has built scores of settlements in the West Bank, territory that Palestinians seek for an independent state. Most countries view the settlements as illegal. Israel disputes this. The last Israeli-Palestinian peace talks collapsed in 2014.
A picture taken from the Palestinian West Bank village of Turmus Ayya shows the Jewish settlement of Shilo.
Israeli border police shot dead a 17-year-old Palestinian youth during a clash with protesters in the occupied West Bank on Monday, Israeli and Palestinian officials said.
