Rabin graduated from Kadourie Agricultural School in Kfar Tabor and in 1941 joined the Palmach, the Jewish Defense Forces' commando unit. He participated in actions against the Vichy French in Syria and Lebanon. During the Israeli war of independence (1948), he directed the defense of Jerusalem and also fought the Egyptians in the Negev. He graduated (1953) from the British staff college, became chief of staff in January 1964, and conceived the strategies of swift mobilization of reserves and destruction of enemy aircraft on the ground that proved decisive in Israel's victory in the Six-Day War (Arab-Israeli wars).

In 1968, on retirement from the army, Rabin became his country's ambassador to the United States, where he forged a close relationship with U.S. leaders and procured advanced American weapons systems for Israel. He drew fire from Israeli hard-liners because he advocated withdrawal from Arab territories occupied in the 1967 war as part of a general Middle East peace settlement.

Returning to Israel in March 1973, Rabin became active in Israeli politics. He was elected to the Knesset (parliament) as a member of the Labour Party in December, joining Prime Minister Golda Meir's cabinet as minister of labour in March 1974. After Meir resigned in April 1974, Rabin assumed leadership of the party and became Israel's fifth (and first native-born) prime minister in June. As Israel's leader he acted as both dove and hawk—securing a cease-fire with Syria in the Golan Heights but ordering a bold raid at Entebbe (Entebbe raid), Uganda, in July 1976, in which Israeli and other hostages were rescued after their plane was hijacked by Palestinian terrorists.

Rabin was forced to call a general election for May 1977, but in April, during the electoral campaign, he relinquished the prime ministership and stepped down as leader of the Labour Party after it was revealed that he and his wife had maintained bank accounts in the United States, in violation of Israeli law. He was replaced as party leader by Shimon Peres.

Rabin served as defense minister in the Labour-Likud coalition governments from 1984 to 1990, responding forcefully to an uprising by Palestinians in the occupied territories. In February 1992, in a nationwide vote by Labour Party members, he regained leadership of the party from Peres. After the victory of his party in the general elections of June 1992, he again became prime minister.

The territorial concessions aroused intense opposition among many Israelis, particularly settlers in the West Bank. While attending a peace rally in November 1995, Rabin was assassinated by a Jewish extremist.