26 January – Moshe Sharett presents his cabinet for a Knesset "Vote of Confidence". The 5th Government is approved that day and the members were sworn in.
1 July – Jordanian soldiers stationed at the walls of the old city of Jerusalem begin to snipe residents of the city. A 24-year-old young Israeli woman is killed from the shootings near the Jaffa Gate.
29 July – The Ma'agan disaster: a Piper J-3light aircraft falls into the crowd of people who are attending a memorial ceremony for the Kibbutz's fallen Parachutists at the village Ma'agan; 17 people are killed and 25 people are wounded.
28 September – The Israeli government's attempt for the Israeli ship "Bat Galim" to traverse the Suez Canal fails after the ship is arrested by the Egyptian authorities. This attempt is made after Egypt prevented other Israeli ships and foreign cargo ships headed towards Israeli ports, of passing through the Suez Canal, in violation with the terms of the Convention of Constantinople.
The most prominent events related to the Israeli–Palestinian conflict which occurred during 1954 include: Notable Palestinian militant operations against Israeli targets : The bus was attacked and three victims of the massacre. The photo was taken several hours after the incident The most prominent Palestinian fedayeen terror attacks committed against Israelis during 1954 include:
17 March – Ma'ale Akrabim massacre: Armed Palestinian Arab militants ambush and board an Israeli civilian passenger bus traveling from Eilat to Tel Aviv. Eleven Israelis on the bus are brutally killed by the militants. Four passengers survived, two of whom are wounded by the militants.
27 June – Armed Palestinian Arab militants, who infiltrated to Israel from Jordan, kill an elderly Israeli farmer on the outskirts of Ra'anana.
28 March - Sixty members of 890th Paratroop Battalion, under command of Ariel Sharon, attack Nahhalin killing 4 national Guardsmen, 3 Arab Legionnaires, the village mukhtar and a woman.
27 June - A seven-man raiding party, including Meir Har-Zion, attack an Arab Legion camp at 'Azzun killing three Jordanian soldiers in their beds. A shepherd was also killed as they approached the camp. One of the attackers was wounded and taken prisoner.
1 September - 890th Paratroop Battalion attack Beit Liqya killing three Arab Legionnaires and taking three prisoner. Two paratroopers are killed in the attack.
