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This essay presents and analyzes Israel’s current rich domestic and foreign policy agenda. Among its focal points is the end of Benjamin Netanyahu’s lengthy tenure as prime minister, the political paralysis of the past two years, and the formation of Naftali Bennett’s government. It argues that this diverse and fragile coalition government cannot cope with Israel’s fundamental problems, especially with regard to the Palestinian issue, but represents a potential transition to more orderly politics. At home, the Israeli government has to cope with a deeply divided society. Externally, it faces a policy environment defined by US ambitions to exit the region and the quest by Iran, Turkey, and smaller regional actors to fill the void created by America’s diminished role.