The money will go towards providing water, food, shelter and medical assistance, external affairs minister Humza Yousaf said.
Prime Minister David Cameron has also announced the UK Government is giving an extra £3 million aid for Gaza, taking its total to £10 million.
But Mr Yousaf said the UK Government and rest of the international community should do more to stop the loss of more "innocent lives" in the conflict.
He added: "The escalating violence in Gaza has already caused far too many lives to be lost and people to be injured.
"The UN has called for an immediate and unconditional ceasefire, and it is crucial that this is delivered.
"Rocket attacks being fired by militants in Gaza is wrong, and must stop, however the Israeli response has been heavily disproportionate as demonstrated by the unacceptable and mounting loss of civilian life.
"There is also increasing evidence that the humanitarian situation is continuing to deteriorate and that is why the Scottish Government is providing £500,000 funding to help the United Nations provide the water, food, shelter and medical assistance people in Gaza need."
Mr Yousaf added: "The Prime Minister has described Gaza as 'an open air prison'.
"He and the international community must do more in order to stop any further loss of innocent lives.
"There must be an immediate lifting of the blockade and siege of Gaza, which is tantamount to collective punishment.
"The Scottish Government has already made clear to the UK Government that we stand ready to help where we can and we have offered medical treatment in the Scottish NHS for those who would benefit from that, as well as offering to house refugees from Gaza in Scotland.
"We will continue to work with others and support efforts to help people affected, however an immediate end to the violence and lifting of the blockade are needed to resolve the situation and we will continue to press the UK Government to do more to try and achieve this."