Azerbaijan and Israel began diplomatic relations in 1992 following Azerbaijan's independence from the Soviet Union. Azerbaijan is one of the majority Muslim countries, alongside Turkey, Egypt, Bahrain, United Arab Emirates, Jordan, Kosovo, Morocco, Albania, and the other former Soviet republics to develop bilateral, strategic and economic relations with Israel.

The history of the Jews in Azerbaijan dates back many centuries. Today, Jews in Azerbaijan mainly consist of three distinct groups: Mountain Jews, the most sizable and most ancient group; Ashkenazi Jews, who settled in the area during the late 19th-early 20th centuries, and during World War II; and Georgian Jews who settled mainly in Baku during the early part of the 20th century.