Amal al-Taramsi, a 43-year-old activist who had regularly attended the protests, was shot the day before, AP reported.
Al-Mezan, a Palestinian human rights group, said she was around 200 meters from the fence when she was shot in the head.
Of the hundreds of Palestinians killed since the protests were launched last spring, only three were women. A 21-year-old medic and a 14-year-old girl were killed last year. An Israeli soldier was also killed last year.
Amal's mother, Halima, sobbed as she sat in the corner of her home waiting for her daughter's body, which was wrapped with a Palestinian flag.
The Israelis "should leave our lands and let us alone to live in freedom," she said, urging Palestinian factions to unite against Israel and US President Donald Trump.
The demonstrations draw Palestinians of all ages, but most gather several hundred meters from the fence. It's usually young men who approach the barrier.
Israeli forces have shot and wounded thousands of Palestinians since the protests began. A number of fellow protesters attended Saturday's funeral in wheelchairs or walking with crutches.