The baby, identified as Chaya Zissel Braun, was laid to rest late Wednesday evening. Among the eight injured were Israeli and US citizens.

The terrorist, Abdelrahman al-Shaludi, 21, hailed from the Silwan neighborhood and was shot by police when he attempted to flee the scene. He later died in the hospital.

Shaludi is the nephew of Mohiyedine Sharid, the former head of Hamas' armed wing and chief bomb-maker who was killed in 1988.

Shaludi was reportedly arrested and sentence to 16 months in an Israeli prison in February 2012. He was detained by Israeli security officials earlier this year for a month.

The terror attack, which occurred at the Ammunition Hill light-rail stop, was captured by security cameras. The stop is located in a densely populated travel thoroughfare across from Israel's national police headquarters. (Photo credit: Yonatan Sindel/Flash90)

Shortly after the attack, Jerusalem Mayor Nir Barkat said it is time to "restore peace and security in Jerusalem."

"Today, more than ever, it is clear that we must send police forces into neighborhoods where there are disturbances, placing them strategically and widely in significant numbers," he said.

The US condemned the terror attacks but urged restraint from both Israel and the Palestinians.

"We express our deepest condolences to the family of the baby, reportedly an American citizen, who was killed in this despicable attack," State Department spokeswoman Jen Psaki said in a statement.

"We urge all sides to maintain calm and avoid escalating tensions in the wake of this incident."

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