Israel was the first non-Pacific nation to declare diplomatic relations with Palau at its independence in 1994.

Israel favored Palau's admission into the United Nations and offered economic aid to the young state.

The Israeli Foreign Ministry has sent convoys of agricultural and fishing experts to Palau to help in training the local population.

As of 2006, Palau had the highest voting coincidence with Israel in the United Nations.

[4][5] In October 2022, The Palauan permanent representative to the United Nations Ilana Seid was accredited as the Republic of Palau's ambassador to Israel, thus becoming the first official ambassador of Palau to Israel.