Palestinians including hundreds who left al-Shifa hospital are seen fleeing Gaza City on foot.
Gunfire was heard as people made their way and Israeli tanks and diggers were seen on the move.
The evacuees from the hospital included sick and injured people, some of them amputees, as well as people who had been sheltering at the hospital, an AFP reporter at the scene said.
About 120 seriously wounded and ill people have remained at the hospital.