On the third day of the pontiff's visit to the Holy Land, his motorcade crossed a checkpoint in Israel's West Bank separation barrier and to arrive at one of Christianity's holiest places, Bethlehem, believed to be the birthplace of Jesus.
During his visit, the pope met with Palestinian President Mahmoud Abbas.
"The Holy See supports the right of your people to a sovereign Palestinian homeland in the land of your forefathers, secure and at peace with its neighbors, within internationally recognized borders," Vatican Radio quoted the pontiff as saying.
During a mass in the city's main square, Manger Square, Pope Benedict promised to pray for the end to Israel's blockade of the Gaza Strip.
"Please be assured of my solidarity with you in the immense work of rebuilding which now lies ahead, and my prayers that the embargo will soon be lifted," he said.
Israel and Egypt first closed their borders with the Palestinian enclave after the radical Islamic movement Hamas seized control of the Gaza Strip in June 2007. The blockade has led to a drastic deterioration in the humanitarian situation in the enclave of some 1.5 million people.
A small delegation of Gazan Christians, who received Israeli permission to leave the enclave, attended the mass.
The pope's one-day visit includes a visit to a children's hospital and the Aida Refugee Camp.
On Thursday, the pope will visit the northern Israeli city of Nazareth, where Jesus grew up, before returning to the Vatican on Friday.
