In September 1937, the training ship Sarah I visited Haifa and Tel Aviv as part of a Mediterranean tour.

1943 witnessed the founding of the Palyam, the naval branch of the Palmach, whose training was undertaken at the maritime school.

The Jewish merchant marine was also raised, operating SS Tel-Aviv and cargo ships such as Atid.

Two of them served with the Fleet Air Arm (FAA), one of whom was Edmond Wilhelm Brillant and the other Zvi Avidror.

With the end of the Second World War and the start of the Jewish insurgency in Mandatory Palestine, Palyam members took part in clandestine immigration activities, bringing Europe's Jews to Palestine, as well as commando actions against Royal Navy deportation ships.

At the outset of the 1948 war and with the founding of the IDF, the Israeli Navy consisted of four former Aliyah Bet ships impounded in Haifa harbor.

With the founding of the IDF in early 1948, the Israeli Navy was therefore formed from a core of the following personnel:[4][5] During the war, the warships served on coastal patrol duties and bombarded Arab targets on land, including Egyptian coastal installations in and around the Gaza area all the way to Port Said.

Palyam personnel often resisted efforts to instill order, discipline and rank in the newly formed service.

[4] Gershon Zak, head of the IDF "Sea Service", was a teacher and bureaucrat without any relevant experience.

The early days of the Israeli Navy were therefore characterized by political infighting, as many groups and individuals jockeyed for power.

Beginning in the early 1950s the navy purchased frigates, torpedo boats, destroyers, and eventually submarines.

Three distinct periods characterize the history of the Israeli Navy: Until 1967 the Naval Headquarters were located at Stella Maris, on the slopes of Mount Carmel, Haifa.

The surprise attack on the Israeli navy's flagship INS Hanit by an onshore Hezbollah battery was a turning point for naval doctrine and operations.

This came amidst the chaotic takeover by rebel groups, many of which were previously linked to al-Qaeda and other jihadist organizations.

[This paragraph needs citation(s)] Photographs from the port of Latakia reveal sunken Osa-class (Project 205) missile boats, with P-15M Termit (SS-N-2C Styx) launchers visibly protruding above the water’s surface.

Formed as the damage control branch of the Navy Shipyards, the unit later incorporated experienced Flotilla-13 divers.

In August 2021, Israel Shipyards announced that the Israeli Navy has signed an agreement with it for the design and supply of a new class of missile boats based on Israel Shipyards' Sa'ar 72-class corvette that would replace its Sa'ar 4.5 ships starting in the mid-2020s.