The government has backed a Sinn Fein motion declaring the building of Israeli settlements in Palestinian territories "de facto annexation".
The move makes Ireland the first EU country to recognise Israel's settlements in this way.
However, an amendment that also called for the expulsion of the Israeli ambassador and place sanctions on the country was rejected.
The Minister for Foreign Affairs, Simon Coveney, says that it could be a message to the global community to follow suit.
Govt passed motion on israeli settlements in oPT.
We need to speak the truth. The scale, pace & strategic nature of Israel’s actions on settlements, demolitions & evictions is de facto annexation.
Motion signals our concern at undermining prospects for peace & 2 State solution.— Simon Coveney (@simoncoveney) May 27, 2021
Speaking in the Dáil, he said the "strategic nature of the expansion and the intent behind it" helped form the decision.
"[It] has brought us to a point that we need to be honest about what is happening on the ground."
"We need to call it out for what it is, it is de facto annexation."