Just hours after 22 people were confirmed dead in the latest Israeli strikes on the nearby city of Rafah, at least 73 more bodies were found in three sites in Khan Younis.
Most were in the courtyard of the Nasser hospital.
The previous day, Palestinian civil defence crews uncovered another mass grave containing 180 bodies inside the hospital complex.
They are reported to include those of women and children who have been missing since Israel first stormed the area two months ago.
The Organisation of Islamic Cooperation called for a war crimes probe as it accused Israel of "horrific massacres".
It said "hundreds of displaced, wounded sick people and medical teams have been subjected to torture and abuse before being executed and buried collectively".
As the onslaught continues, Israeli strikes at the weekend on Rafah, which borders Egypt to the south, killed 22 people, including 18 children, authorities said yesterday.
'She should be in her mother's womb but she is deprived of this right'
The major anticipated Israeli offensive into the city - where some 1.4 million Palestinian refugees are holed up - has yet to materialise but bombing raids continue to take a heavy toll.
The first strike killed a man, his wife and their four-year-old daughter, according to the nearby Kuwaiti Hospital, which received the bodies.
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