Sixty-two lawmakers, including Prime Minister Benjamin Netanyahu, voted in favour and 48 against the bill, championed by far-right National Security Minister Itamar Ben Gvir.
There was one abstention and the rest of the lawmakers were not present.
Ben Gvir in the run-up to the vote had worn a lapel pin in the shape of a noose, symbolising his support for the legislation.
“We made history!!! We promised. We delivered,” he posted on X after the vote.
The bill would make the death penalty the default punishment for Palestinians in the Israeli-occupied West Bank found guilty of intentionally carrying out deadly attacks deemed “acts of terrorism” by an Israeli military court.
The bill says that the sentence may be reduced to life imprisonment under “special circumstances”.
Palestinians in the West Bank are automatically tried in Israeli military courts.
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