The fighting left 4 Hezbollah guerrillas dead and 11 Israelis wounded.
Hezbollah guerrillas fired on it, killing one Israeli soldier.
Hezbollah guerrillas moved into the border zone after Israeli forces withdrew.
Israeli military officials said they had killed nearly 100 Hezbollah guerrillas.
In 1986 clashes broke out between Hezbollah guerrillas and opposing forces.
Later that spring the conflict with Hezbollah guerrillas in southern Lebanon heated up.
The attack came after a week of escalating attacks between Israeli forces and Hezbollah guerrillas.
Hezbollah guerrillas said today that they had captured an Israeli army colonel "in a complicated security operation."
About 50 Hezbollah guerrillas were killed during operations last year, officials of the organization say.
Israel is concerned that the weapons could be passed to Hezbollah guerrillas in Lebanon.