Malachi Moshe Rosenfeld, 26, is being brought to rest at Kochav Hashachar, in the Binyamin region. He was murdered by terrorist gunmen on Monday.
Hundreds of friends and relatives are taking part in the funeral, including Education Minister Naftali Bennett.
Thirteen years ago, on March 29, 2002, Naftali's eldest brother, Lt. Yitzchak-Menachem Rosenfeld, 22, was killed in a jeep accident in the Tze'elim Stream, in the Judean Desert. He was a pilot in the IAF.
Malachi's parents are among the founders of Kochav Hashachar. The father, Eliezer, is a clarinet player, and the mother is a social worker. They have seven children, beside Yitzchak-Menachem and Malachi Moshe.
"This is a great national tragedy,” Eliezer Rosenfeld said Tuesday after his son's death. “I raised an ambitious boy, wise, with such great intelligence. He went out to play basketball, a competition between communities, and didn't come back. It's shameful, what is happening in our country.”
The Al-Qassam Brigades, the armed wing of Palestinian terror group Hamas, has claimed responsibility for the terror attack near Shvut Rachel.
Four Israeli civilians were injured in the terror attack, among them Malachi Moshe Rosenfeld, who succumbed to his wounds on Tuesday evening.
The Al-Qassam Brigades asserted the attack was part of "a series of quality operations" carried out by the group's members in recent months, and that the attackers opened fire at point-blank range on a car of "settlers" before managing to escape safely.
On Tuesday, sources in the IDF and the Israel Security Agency (ISA or Shin Bet) admitted that a terror cell appears to be at large in the Binyamin region north of Jerusalem, although they did not say if the cell had any connection to Hamas.