Israel was the first non-Pacific nation to declare diplomatic relations with Palau at its independence in 1994. Israel favored Palau’s admission into the United Nations and offered economic aid to the young state. The Israeli Foreign Ministry has sent convoys of agricultural and fishing experts to Palau to help in training the local population. Israel maintains an Embassy in the capital, Koror.
As of 2006, Palau had the highest voting coincidence with Israel in the United Nations.
In 2006, President of Palau Tommy Esang Remengesau Jr. visited Israel and held meetings with the Israeli Prime Minister Ehud Olmert and President Moshe Katsav. "We're the best of friends and we're here to reiterate that friendship", Remengesau said during the visit.