The "nation state" law says Jews have a unique right to national self-determination there and puts Hebrew above Arabic as the official language.
Arab MPS reacted furiously in parliament, with one waving a black flag and others ripping up the bill.
Israel's prime minister, Benjamin Netanyahu praised the bill's passage as a "defining moment".
However, the law risks further alienating Israel’s large Arab minority, who have long felt discriminated against.
He reiterated the status of Jerusalem under Israeli law, which defines the city - part of which is claimed by the Palestinians as the capital of a future state - as the "complete and united... Capital of Israel".

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