The ministry did not say how Layla Al Ghandour was exposed to the tear gas.
Baby Leila, only 8 months old, died Monday as major protests escalated into the bloodiest day in years, with at least 60 Palestinians killed.
The Palestinian health ministry said yesterday that Leila had died from tear gas inhalation during protests against the relocation of the U.S. embassy to Jerusalem.
On Tuesday, journalists and family members waited for their dead in Gaza's al-Shifa Hospital, as surgeons rushed to treat injured protesters in overflowing operating rooms, while other patients lined the corridors.
The Israeli military said at least 24 of those killed on Monday were "terrorists with documented terror background" and a lot of them were active operatives of Hamas.
In fresh clashes on Tuesday, Israeli forces killed two Palestinians, according to local reports.
She said that it was Hamas - not Israel - who was making the "lives of Palestinians miserable" and praised Israeli forces for their "restraint" in the face of protests in Gaza.
Officer, 4 attackers wielding samurai swords dead in Indonesia police station assault
In a message carried on its Amaq news agency, Islamic State has claimed responsibility for the attacks in Surabaya. The report said that the men had driven their auto into the police yard before getting out to stage the attack.
Leila's family said her mother had left the baby at home to join the demonstrations. 'We got away from the gas.
"Let her stay with me, it is too early for her to go", Laila's mother reportedly cried as she held her daughter's body, which was wrapped in a Palestinian flag. They often can not afford the medicines or medical bills for follow up care and extremely anxious about their children's futures - which they say were already being steadily eroded by more than 10 years of Israeli blockade, falling donor interest.
"Every country has an obligation to defend its borders", Israeli Prime Minister Benjamin Netanyahu said.
UN General Secretary António Guterres said he was "profoundly alarmed and concerned by the sharp escalation of violence".
Rupert Colville, the United Nations human rights spokesperson, told media on Tuesday the level of force used by Israel was unacceptable.
But during a UN Security Council meeting, USA ambassador Nikki Haley said: "No country in this chamber would act with more restraint than Israel has".
Nickolay Mladenov, the UN Special Coordinator for the Middle East Peace Process, briefed the Security Council on Tuesday that Gaza's fragile infrastructure, including lengthy electricity blackouts, required immediate action, Reuters reported.