This chapter reviews the Israeli experience in order to offer some relevant insights regarding the political, strategic and social conditions which can facilitate the defeat or reduction of terrorism. Before advancing to the analysis of the Israeli case study, it discusses the conceptualization of terrorism and counterterrorism. The chapter introduces the three counterterrorism models that Israel has been applying: defensive; preventive; and retaliatory, and assesses their pros and cons. It is important to remember that these models are not pure, nor are they mutually exclusive. Counterterrorism policies encompass all three of them. However, the relative weight of every model tends to differ from one policy to another. The chapter identifies the specific characteristics of the challenge of terrorism at that time and analyzes the attributes and outcomes of the measures that were adopted to counter it. Several components of the conflict seem to undermine the ability of Israel to curb Palestinian terrorism.