Prime Minister of Israel – Yitzhak Rabin (Alignment) until 21 June, Menachem Begin (Likud)
President of Israel – Ephraim Katzir
Chief of General Staff - Mordechai Gur
Government of Israel - 17th Government of Israel until 21 June, 18th Government of Israel
3 January – The Israeli Minister of Housing Avraham Ofer commits suicide after being suspected of corruption.
7 April – Yitzhak Rabin announces his retirement from the premiership of the Labor Party, following the Dollar Account affair.
7 April – Maccabi Tel Aviv wins its first European Championship, defeating Mobilgirgi Varese 78:77 in the final held in Pionir Hall, Belgrade and CSKA Moscow 91:79 in semifinal group game held in Virton, Belgium, an achievement that produced Tal Brody's famous sentence "We are on the map, not only in basketball".
10 May – Disaster of the 54: An IAF "Yasur" helicopter crashes in the Jordan Valley. 54 IDF soldiers on board are killed in the disaster.
17 May – The Likud Party, led by Menachem Begin, wins the elections in Israel, ending almost 30 years of rule by the left-wing Alignment and its predecessor, Mapai.
20 June – Menachem Begin presents his cabinet for a Knesset "Vote of Confidence". The 18th Government is approved that day and the members are sworn in.
July – The 1977 Maccabiah Games are held.
19 November – Egyptian President Anwar Sadat becomes the first Arab leader to officially visit Israel when he meets with Israeli Prime Minister Menachem Begin, seeking a permanent peace settlement.
20 November – Egyptian President Anwar Sadat gives a speech in the Knesset.
25 December – Prime Minister of Israel Menachem Begin meets in Egypt with President of Egypt, Anwar Sadat.
The most prominent events related to the Israeli–Palestinian conflict which occurred during 1977 include:
Notable Palestinian militant operations against Israeli targets
The most prominent Palestinian Arab terror attacks committed against Israelis during 1977 include:
Notable Israeli military operations against Palestinian militancy targets
The most prominent Israeli military counter-terrorism operations (military campaigns and military operations) carried out against Palestinian militants during 1977 include:
The founding of the kibbutz Beit Rimon.
12 January – Eithan Urbach, Israeli swimmer.
16 January – Ariel "Arik" Ze'evi, Israeli Judoka.
17 March – Rana Raslan, the first Israeli Arab to be crowned Miss Israel.
12 July – Yonit Levi, Israeli TV news anchorwoman.
12 September – Idan Raichel, Israeli musician.
12 October – Miri Bohadana, Israeli model and actress.
3 January – Avraham Ofer (born 1922), Polish-born Israeli politician.
20 February – Baruch Uziel (born 1901), Ottoman (Thessaloniki)-born Israeli politician
6 March – Shmuel Stoller (born 1898), Russian-born Israeli agronomist and an early member of the Zionist movement.
19 May – Aviad Yafeh (born 1923), Israeli diplomat and politician.
6 July – Ödön Pártos (born 1907) Hungarian-born Israeli violist and composer.
11 July – Yitzhak Danziger (born 1916), German-born Israeli sculptor.
13 November – Gertrud Kraus (born 1901), Austrian-born Israeli choreographer and dance pioneer.
21 September – Ben-Zion Halfon (born 1930), Libyan-born Israeli politician.
