Israel is at the eastern end of the Mediterranean Sea. Its southernmost point reaches the Red Sea.
To the west lies Egypt, to the east, Jordan. Lebanon is to the north and Syria to the north-east.
At the moment there is no separate state of Palestine, but Palestinians want their own country based on the West Bank and the Gaza Strip, an idea backed by an international group called the Quartet, which is leading the peace efforts.
Both Israelis and Palestinians want Jerusalem to be their capital and what happens to the city is one of the big issues.