This chapter outlines a possible explanation for the overall stability of the Israeli regime based on the concept of state capacity, namely, the ability of the state to use coercive and administrative capabilities to “get things done.” It therefore emphasizes the role of the state itself in explaining the regime. The first section provides a short conceptual clarification of the concept of state capacity and its relationship with regime stability. This is followed by a presentation of the historical origins of Israeli state capacity and some measures of its capacity. The main part of this chapter discusses the ways in which state capacity sustains the regime’s stability in light of three challenges: the internal aspect of the conflict, the challenge to state authority from political tensions among its Jewish citizens, and the ways in which the zones of control have shifted according to the limited ability of state capacity to ensure direct control of the entire Occupied Territories.