Following the Yom Kippur War, the Armored Corps was required to rebuild units that had suffered heavy losses, restore hundreds of armored vehicles to operational readiness, train new crews and implement the lessons learned from the war. The Corps was expanded, training resumed and the integration of armored forces with infantry, combat engineering, artillery and air power was strengthened.

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At the same time, one of the most important defense projects in Israel’s history came to fruition: the development of the Merkava tank under the leadership of Major General Israel Tal. The decision to manufacture a tank in Israel stemmed from the need to reduce dependence on foreign countries and adapt the vehicle to the IDF’s unique operational requirements.

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The Merkava Mark 1 entered service in 1979. Its design placed particular emphasis on crew survivability, alongside firepower, mobility and maintainability under field conditions. The engine was positioned at the front of the tank to provide an additional layer of protection for the crew, while the fighting compartment was designed to allow for the evacuation of casualties. The Merkava marked a transition from adapting and upgrading foreign tanks to independent and ongoing Israeli development.

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During this period, the IDF intensified its operations against terrorist organizations in Lebanon. These operations culminated in Operation Litani, during which the 36th Division deployed tanks against terrorist positions. Following the operation, the conflict continued until the outbreak of the Peace for Galilee War.