It was the first government in Israeli political history led by a right-wing party, with the coalition consisting of Begin's Likud (which included Ariel Sharon's Shlomtzion, which had merged into Likud shortly after the election), the National Religious Party and Agudat Yisrael.

Begin initially held four portfolios in addition to the position of Prime Minister whilst he negotiated with Dash, which had won 15 seats, making it the third largest party in the Knesset.

Defense Minister Ezer Weizman lost his job in May 1980 following confrontations with Begin and Ariel Sharon.

Following the 1978 South Lebanon conflict Weizman proposed forming a national unity government with the Alignment to stimulate the peace process.

Following a dispute with Sharon over settlements in the occupied territories, Weizman considered establishing a new party with Moshe Dayan and was expelled from Likud.