Israel's ground, air, and naval forces, known as the Israel Defense Force (IDF), fall under the command of a single general staff. Conscription is universal for Jewish men and women over the age of 18, although exemptions may be made on religious grounds. Druze, members of a small Islamic sect living in Israel's mountains, also serve in the IDF. Israeli Arabs, with few exceptions, do not serve. During 1950-66, Israel spent an average of 9% of GDP on defense. Real defense expenditures increased dramatically after both the 1967 and 1973 wars. The 2002 defense budget of $8.97 billion represented about 19.9% of the total government budget, which is equivalent to 8.75% of GDP. The United States provides approximately $2 billion per year in security assistance.

In 1983, the United States and Israel established the Joint Political Military Group, which meets twice a year. Both the U.S. and Israel participate in joint military planning and combined exercises, and have collaborated on military research and weapons development.