The election resulted in the formation of a Labor government, led by Yitzhak Rabin, helped by the failure of several small right wing parties to pass the electoral threshold.

Labour's Yitzhak Rabin formed the twenty-fifth government on 13 July 1992, including Meretz and Shas in his coalition, which had 17 ministers.

Hadash and the Arab Democratic Party also supported the government despite not being coalition members.

The government's willingness to make peace with Syria and concede the Golan Heights led to Avigdor Kahalani and Emanuel Zisman leaving the party to form the Third Way.

Peres called early elections in 1996 in order to seek a mandate to continue the peace process,[3] in which he lost.