1 February – Lillehammer affair: Five Israeli Mossad agents are sentenced in Norway to prison terms for the assassination of Ahmed Bouchiki. The prison terms range from two and a half to five years, although all the agents are eventually released within 22 months and deported back to Israel.
5 March – Israel completes its pullback from the west side of the Suez Canal to the east side of the canal, as agreed upon in the Agreement on Disengagement.
10 March – Golda Meir presents her third government to the Knesset.
15 May – Ma'alot massacre: Palestinian militants of the Democratic Front for the Liberation of Palestine cross the Israeli border from Lebanon. They attack a van killing two Israeli Arab women, they enter an apartment building in the town of Ma'alot and kill a couple and their 4 year old son. After that the militant squad take over a local school and hold at 105 students and 10 teachers hostage. The hostage-takers demanded the release of 23 Palestinian militants from Israeli prisons, or they would kill the students. On the second day of the standoff, a unit of the elite Golani Brigade stormed the building. During the takeover the hostage-takers detonated their grenades and shot the children. Ultimately, 25 hostages were killed, including 22 children; 68 more were injured.
24–25 June – 1974 Nahariya attack: three Palestinian militant squad infiltrated the coastal city of Nahariya in Israel by sea from Lebanon. During the attack three civilians and one Israeli soldier were killed.