Israeli Prime Minister Benjamin Netanyahu backed the measure, and National Security Minister Itamar Ben Gvir celebrated the vote, wearing a noose-shaped pin on his lapel.
Under the new rules, anyone convicted of a fatal terror attack faces a default punishment of death by hanging.
And it applies by default in military courts. However, these courts only try Palestinians in the occupied West Bank.
The law also applies in civilian courts. But there is a catch. The attacker must act with the intention to put an end to the State of Israel. Legal experts say this exact wording protects Jewish citizens from the same punishment.
The Palestinian Authority has stressed Israel has no sovereignty over Palestinian land, whereas supporters of the bill say the country must fight a cycle of terror.
But will this law stop the violence?
The death penalty is banned across the EU and all European countries, with the exception of Belarus. Britain, France, Germany and Italy say the policy has zero deterrent effect and call it “de facto discriminatory”.
Now Brussels is stepping in. Euronews has seen an exclusive draft statement from EU foreign policy chief Kaja Kallas, calling the bill "a grave regression". It marks a noticeably sharper tone from Europe towards Israel.
Yet, diplomacy aside, the core problem comes down to the law itself. If a justice system seems to use two different sets of rules for the exact same crime, can one still call it justice?
Watch the Euronews video in the player above for the full story.
