The Israel-Egypt Peace Treaty was signed on 26 March 1979, following two interim agreements of separation of forces and withdrawal of Israeli forces. The treaty was the result of secret preliminary talks between senior Israeli and Egyptian representatives, Egyptian President Anwar Sadat's visit to Jerusalem in November 1977 and the conclusion of the Camp David Accords of 18 September 1978.

The treaty included cessation of the state of war, mutual recognition, normalization of relations, a gradual complete withdrawal of Israeli forces and civilians from Sinai to the international border and restrictions on the placement of armed forces in the Sinai and the Negev. It also provided for free passage of Israeli shipping through the Suez Canal and recognition of the Straits of Tiran as an international waterway. Thus, Egypt became the first Arab country to officially recognize Israel and make peace with it.

By 25 April 1982 Israel completed the evacuation of its military forces and installations as well as civilian settlements from the Sinai Peninsula, handed over sovereignty of the area to Egypt and withdrew to the international border.