Israel sent 30,000 troops into southern Lebanon during a month-long war triggered by Hezbollah's abduction of two soldiers in July.
A ceasefire came into force on 14 August and Israel began withdrawing troops.
More than 1,100 people - mostly civilians - were killed in Lebanon during the war while the Israelis lost more than 150 troops
And there are fears the lost military prowess might encourage the country's enemies to take bolder actions against Israel.
While on the other hand, peace campaigners think Palestinians in Gaza might be an easy target for a backlash from the humiliated army and government
Paul Adams reports for File on 4 on Israel's national angst and assesses the prospects for peace.
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