[14] In 1995, Israeli entrepreneur Amnon Ovadia began a project for an online English–Hebrew dictionary that would not interrupt the reading process.

In the same year, Formula Systems, headed by Dan Goldstein, acquired Mashov Computers and became the largest shareholder in the company.

In 2010, Google Ireland signed an extended cooperation agreement with Babylon to provide it with online search and pay-per-click advertising services.

[21] In 2011, Babylon was named the seventh most popular website in Libya, the eighth in Algeria and the eleventh in Tunisia.

[23] In October 2014, the translation business was purchased by Babylon Software Ltd. A single click on any text using the right mouse button or combination of the right mouse button and a keyboard modifier, and the Babylon window appears providing a translation and definition of the clicked term.

[24] Babylon is a tool used for translation and conversion of currencies, measurements and time, and for obtaining other contextual information.

Babylon Ltd. has developed 36 English-based proprietary dictionaries in 21 languages (English, Arabic, Simplified Chinese, Traditional Chinese, Czech, Danish, Dutch, French, German, Greek, Hebrew, Italian, Japanese, Korean, Norwegian, Polish, Portuguese, Russian, Spanish, Swedish and Turkish) that are free of charge to users of the software.

These dictionaries comprise between 60,000 and 200,000 terms, phrases, acronyms and abbreviations and are enabled with a morphological engine which facilitates recognition of all inflected forms of single words and phrases, provides all forms of terms that include prefixes and extensions and supplies a solution for all formats of writing.

[29] Sixteen days later, on 23 August 2010, Microsoft announced that Babylon Ltd. had modified the program and that it was no longer categorized as adware.

"[33] In 2012 the Babylon search toolbar was identified as a browser hijacker that, while very easy to install inadvertently, is unnecessarily difficult to remove afterwards.

[36][37] On 29 October 2013, Google notified Babylon that it did not intend to renew its cooperation agreement between the two companies, which terminated on 30 November 2013.