The arrest happened in the early hours of the morning after Israeli forces raided Tamimi's home in Nabi Saleh village in the northern West Bank.
In a statement he posted on Facebook, the young teenager's father, Bassem Tamimi, confirmed the news.
"Dear friends, Israeli occupation forces raided my home and arrested my daughter Ahed Tamimi. They beat us, searched our home and confiscated all our electronic devices, including cameras, computers and mobile phones," he wrote.
In his post, Tamimi explained that his daughter's arrest came hours after she confronted soldiers who had shot a young teenager in the head near her home.
Speaking to Andalou news agency, he said the young teen has now been taken to an unknown destination.
In their statement on the matter, the Israeli army said the young activist was arrested for participating in "violent riots" that took place in her village.
"She was arrested on suspicion of attacking Israeli soldiers during the riots," the statement read.
Commenting on the matter, Israel's Defense Minister Avigdor Liberman, threatened that Tamimi and her family will be persecuted by Israeli authorities.
"Everyone involved, not only the girl but also her parents and those around them will not escape from what they deserve," he said.
Earlier on Tuesday, the occupying state's Minister of Education, Naftali Bennet, also spoke against Tamimi.
In a statement to the Israeli Army Radio, Naftali said the young activist should be "jailed for life".
Tamimi and her family have long been targets of the Israeli authorities and the animosity towards them grew even further after numerous videos of the brave young activist standing up to IOF soldiers went viral on social media, amassing millions of views.
A video of the arrest is going viral online
This is no way to treat a child!
"Because she dared to challenge Israeli thugs outside her home"
"This is outrageous"
"She is a CHILD"
"Fascist Israel commits crimes against humanity with their treatment of children"
"Ahed Tamimi is real"
#FreeAhedTamimi is now trending on Twitter
Israel detains hundreds of Palestinian children every year
According to Palestinian human rights organization Addameer, Israel annually arrests, interrogates, and detains around 700 Palestinian children from the occupied West Bank.
It is estimated that since 2000, more than 12,000 Palestinian children have been unlawfully detained by Israeli authorities.
In recent years, the occupying state has been condemned for passing the "Youth Bill", which permits the detention of children as young as 12 if they are convicted of "terrorist offenses".
Israel's military law, which is currently applied to Palestinian residents of the Israeli-occupied West Bank, also allows the imprisonment of children.