This article examines Turkish-Israeli relations from 1948 to 2012 in light of domestic and international events that have impacted the two countries throughout the years. The article examines each country’s threat perceptions, which emanate from developments in the Middle East. The author points out commonalities and confrontations between the two countries, and discusses how the latter can be avoided. The article explores how to improve relations in view of the rapid changes occurring in the region, and discusses how the two countries are positioning themselves in the current restructuring of the Middle East and emerging new power balances, some of which are created by these two major regional players themselves