After the 1982 Peace for Galilee War in Lebanon the IDF had to face, on the tactical level, a continued war against terrorism both in Lebanon and within Israel. The Peace Process however brought about a profound change in the strategic environment. The ongoing war against terrorism included, in the first stage (the Peace for Galilee War and its aftermath), fighting against the PLO, Amal and Hizbullah in extensive areas of Lebanon. This was followed by the simultaneous IDF involvement in the Intifada in the West Bank and Gaza Strip (which began in December 1987) and the struggle against terrorism in South Lebanon.

The 1991 Gulf War and the breakup of the Soviet Union left an indelible effect on the Middle East. These events influenced the Arab World to reassess its position vis-a-vis Israel and caused Israel to reevaluate its perception of the defense situation and redefine the nature of the strategic threat. This reassessment has had an important effect on the future build-up of the IDF.
On the strategic level, the Madrid Framework gave rise to a Peace Process that produced a Peace Treaty with Jordan (26 October 1994) and a series of agreements with the Palestinians:

*The Declaration of Principles (13 September, 1993),
*The Gaza-Jericho Agreement (4 May, 1994),
*The Interim Agreement on the West Bank and Gaza (28 September, 1995),
in whose context Israeli troops redeployed in Gaza and the West Bank (1994-1995),
*The Hebron Agreement (15 January 1997),
*The Wye River Memorandum (23 October 1998),
*The Sharm El-Sheikh Memorandum ( 4 September 1999).
*Permanent status negotiation began with the Palestinians in May 1996.

Bilateral negotiations between Israel and Syria have failed to lead to progress on a peace
treaty as of July 2000.

Yet despite these negotiations, Israel has had to simultaneously wage war against terrorism
in Lebanon and within its borders.