The acid-thrower was subsequently arrested by police and taken to hospital under custody.
The military said the attack took place in the Gush Etzion settlement bloc south of Jerusalem. The attacked family – a Jewish woman and four girls – were sitting inside a car when the attacker threw acid at them.
Israeli police said the family members were slightly injured.
Acid attacks are rare in Israel and the Palestinian territories, but over the past month, 11 people have been killed in Palestinian attacks, mostly in Jerusalem, although there have been other attacks in Tel Aviv and the West Bank.
The latest attack came amid heightened tensions in the West Bank, the day after the funeral of Palestinian cabinet member Ziad Abu Ain, who collapsed after an apparent scuffle with Israeli troops.
Officials dispute the cause of death. A Palestinian pathologist said Mr Abu Ain died as a result of a blow to his body, not of natural causes, but an Israeli doctor said the 55-year-old’s death was caused by the blockage of a coronary artery.
Gunmen fired dozens of bullets at the Israeli embassy in Athens in a pre-dawn drive-by attack on one of the Greek capital’s best-guarded buildings.
Police said 54 bullet casings from an AK47 assault rifle – a weapon favoured by Greek anarchist militant groups – were recovered. Nobody claimed the attack, which occurred long before the building opened for business. No one was injured.