Israel's policy on GMOs during the past decades focused primarily on managing its agricultural research and development to promote national economics. Similar to the European Union's policy on the same issue, one of the critical and most important activities for Israel are GM crops, over which the government has asserted formal authority. Israeli law permits the development and growth of genetically modified organisms (GMOs) for research purposes in accordance with requirements established by subsidiary legislation. This chapter explores Israel's environmental and safety policy on GM food and crops and places it in an explanatory perspective. First, this chapter briefly outlines the Israeli GMO policy, and the differences in the development of GM regulations for different sectors. Second, the chapter continues to analyze the governmental, legal and regulatory frameworks for sectoral activity on GMOs. Third, the chapter follows with an examination of the roles of economic interests, institutional structure and cultural factors in explaining Israel's GMO policy. Fourth, the discussion points to contemporary developments and their implications for sustainability. Finally, the chapter concludes by emphasizing the importance of sustainability in providing a basis for the development of future policy.