By the end of the 19th century, Jewish nationalism emerged as a prevailing dream. This movement, known as Zionism, envisioned a return of all Jews from the Diaspora to a Jewish homeland. In the 1880s, Eastern European Jews made their way to what was then called Palestine. This was the first Aliyah (immigration) wave, the purpose of which was largely to establish agricultural settlements. Baron Edmond de Rothschild assisted with funds.

The first Zionist Conference was held in Basel, Switzerland, in 1897, under the leadership of Theodor Herzl. It took another 51 years and the experience of the Holocaust, though, to see the Zionist dream become a reality. As a result of this official sanction for a Jewish homeland by the League of Nations, Jews were encouraged to immigrate to Palestine. The Arabs opposed Jewish settlement and there were many anti-Jewish attacks.

In 1905, a second Aliyah wave brought Jews from Russia. Tel Aviv was founded in 1908, the first all-Jewish city.

In 1917, with the British defeat of the Ottoman Empire, Palestine came under British rule. The modern Arab states were established at that time. In November 1917, in the Balfour Declaration, the British government announced its intention to facilitate the "establishment in Palestine of a national home for the Jewish people." This Declaration was endorsed by the Supreme Council of the Principal Allied Powers at a Conference in San Remo on April 24, 1920.

In 1922, the League of Nations granted to Great Britain a Mandate to secure the establishment of a Jewish homeland, to facilitate Jewish immigration and to encourage Jewish settlement on the land. By 1929 the Jewish population in Palestine was 160,000, and by the spring of 1936, with the advent of Hitler and increased German immigration, there were close to 400,000 Jews, or about 30 percent of the total population.

In 1939, the British, influenced by the Arab uprisings and the Mufti of Jerusalem, issued the White Paper, which limited Jewish immigration to 10,000 per year for five years, with any further Jewish immigration to be made only with Arab consent.

At the close of World War II, the "Palestinian Question" came before the General Assembly of the United Nations. It recommended that the British Mandate be ended and that Palestine be divided between the Arabs and Jews.

On November 29, 1947, the General Assembly partitioned the country into two independent, sovereign states.

On May 14, 1948, the British government terminated its Mandate. The day after, May 15, 1948, the British left the country, and David Ben-Gurion, on behalf of the Jewish Agency, declared the independence of the State of Israel.