Khalida Jarrar, a top figure of the leftist Palestinian Front for Liberation of Palestine (PFLP), was released at a military checkpoint near the northern West Bank city of Tulkarem, where crowds welcomed her and moved with her to her home in Ramallah, Xinhua news agency reported.
She said it was essential to increase efforts to release female Palestinian prisoners, highlighting it as a national priority in order to end their suffering inside Israeli jails.
Israeli forces arrested Jarrar in April 2015 from her home in Ramallah.
She was transferred to administrative detention for six months and later was sentenced to 15 months in jail.
Jarrar only served 14 months of her sentence.