A mother in Rishon Letzion posted a photo of her daughter wearing a yellow patch on Facebook.
"Shocked, completely stunned, find it hard to speak, refuse to understand…this is how my three-year-old daughter returned from the day care center today.” she wrote.
“I don't remember if and how I was taught in nursery school about Holocaust Remembrance Day, we all know and respect its importance, but the message was conveyed to the toddlers today in an appalling, unacceptable way.”
The Rishon Letzion municipality said the nursery school teacher was suspended immediately and summoned to a hearing before dismissal.
"Nursery school teachers were instructed on how to deal with Holocaust Day before the day itself," the city said in a statement to Haaretz.
Children in other schools also were asked to wear a yellow Star of David during the Holocaust memorial ceremony or during the school day, according to parents who spoke with the paper.
Also on Thursday, fourth-grade students at a school in Tel Aviv were asked to describe a day in a concentration camp and a conversation with a Nazi officer.
The assignment was a part of a worksheet entitled "The Final Solution plan." The children were asked on the sheet to "imagine a day in a concentration camp," "describe the day of a child hiding in a cellar or an attic from the Nazis" and "write an imaginary dialogue between yourself and a Nazi soldier."
The Education Ministry's Tel Aviv office said the worksheet was not age appropriate, and had been distributed without the principal's knowledge, Haaretz reported. The teacher will meet with the school supervisor over the matter.