[8] THC, the psychoactive chemical component in marijuana that causes a high, was first isolated by Israeli scientists Raphael Mechoulam of the Hebrew University in Jerusalem's Center for Research on Pain and Yechiel Gaoni of the Weizmann Institute in 1964.

[9][10] Marijuana for medical use has been permitted in Israel since the early 1990s for cancer patients and those with pain-related illnesses such as Parkinson's, multiple sclerosis, Crohn's disease, other chronic pain and post-traumatic stress disorder.

In 2004, the Israeli military began using tetrahydrocannabinol (THC), one of the active ingredients in cannabis, for experimental treatment of post traumatic stress disorder (PTSD) of soldiers.

[9] The Tikkun Olam Company has developed a variety of cannabis strains and marijuana-derived products that are reported to provide medical benefits.

[14] In 2017, it was reported that the Israeli medical cannabis industry could soon be worth "hundreds of millions of dollars", with research innovation in the area being backed by Israel's Ministry of Health.

[23] Israel's government-sponsored Breath of Life company plans to apply for FDA status for its new cannabinoid pills designed for treatment of autism.

[31] Parties represented in the Knesset that supported the legalization of medical marijuana in 2015 include the Zionist Union, the Joint List, Meretz, and Kulanu.

[31] In 2017, the conservative government of Benjamin Netanyahu, led by Likud and consisting of various right-wing, religious and Sefardi-interest parties planned to decriminalize cannabis usage.

[6] Despite acute tension at the time between left- and the right-wing parties, the initiative was supported in the Knesset by parties across the political spectrum; right-wing Justice Minister Ayelet Shaked remarked that "whether one supports the use of cannabis or is opposed, it is wrong to judge cannabis users per criminal law and its derivatives", while left-wing Meretz member Tamar Zandberg also applauded the decision, calling it a "message that millions of Israelis who consume cannabis are not criminals" and "an important step but not the end of the road", while Public Security Minister Gilad Erdan said it marked a change in policy toward a rehabilitation-oriented approach.

[21][33] Israel's liberal stance on cannabis stands in contrast to the rest of the Middle East region where in some countries "drug trafficking" is punishable with death.

In November 2017, it was reported that Israeli Ministry of Health considering to withdraw its objection to making CBD component of cannabis legal.

Activists lobbying for complete legalization do not support the new legislation, stating that the new law could promote stricter enforcement of the fines, whereas the police were hesitant to open criminal investigations on such large numbers of otherwise law-abiding citizens.

[37][38] In 2013, Hagai Bar Giora, an Israeli rabbi and member of the Kashrut Department, stated in an interview with Israel's Cannabis magazine that "if you smoke it, there is no problem whatsoever.