CCTV footage from the Max Brenner restaurant, where four were killed when gunmen opened fire on unsuspecting diners, has shown the shocking moment the attackers stormed the building.
The images show the two men dressed in dark suits, which have been identified in some reports as Orthodox Jewish clothing, as they open fire, killing indiscriminately.
Customers scattered immediately when the shooting started, desperately running for their lives. In one chilling moment, one of the two gunmen can be seen stopping to reload before executing a customer.
Both the attackers have been detained by the Israeli security forces. One of the two, injured in a failed attempt to escape, is now receiving medical treatment.
Israeli Prime Minister Benjamin Nethanyahu said that the Israeli Defence Force would take "decisive" action in the aftermath of the killings.
Speaking to reporters, Netanyahu said: "The terror attack this evening in Tel Aviv is a very difficult event of cold-blooded murder by atrocious terrorists. I send my condolences to the families of the victims, whose lives were destroyed in a moment, and I wish a full recovery to the injured. We will take a series of offensive and defensive steps, we will locate anyone who cooperated with this attack, and we will act firmly and intelligently to fight terrorism."
No one has claimed responsibility for the attack, but both Hamas and Fatah have praised the shooting incident. The official Twitter account of Hamas hailed the attackers as "heroic" and pledged that more attacks would take place during the period of Ramadan, a holy month in the Islamic faith.
Over the last eight months, Palestinians have carried out dozens of attacks that have killed 32 Israelis and two Americans. On 1 January, an Arab Israeli killed three people in Tel Aviv and in March a Palestinian went on a stabbing spree, killing an American and wounding seven others.