This study examines the organic relationship between Israeli military-security production and the structure of settler colonialism in Palestine. It argues that the expansion of Israeli settler colonial structure is driven by war economy, which is not only one of the pillars of the concept of power in the Zionist ideology, but also a central instrument in the formation of the state and society in Israel. The paper highlights Israel’s practices of exploiting the Palestinians as a testing ground for its new weapons, which in turns serves the war economy through exports. Unlike classical settler-colonial experiences, the metropole is absent in the case of Israel, and thus the country structurally compensates for its absence through a clientelistic relationship with Western imperialism to gain military support, especially the US, and it relies on arms diplomacy to normalize itself in the regional and international system.