According to Reuters, it is an improbable scenario few Israelis could have imagined.
Netanyahu, whom Israeli politics have revolved for a decade, will now become opposition leader.
Bennett, a right-wing former Netanyahu protege, will lead the most ideologically diverse government in Israeli history.
The final vote was 60-59 with one abstention, the smallest possible majority for the new government.
US President Joseph R. Biden spoke by phone with Bennett shortly after the vote and said he looked forward to working with the new government. Bennett thanked Biden for his support of Israel during the last operation in Gaza and said he is a great friend of Israel, Bennett’s office said.
According to Axios, Netanyahu used his last speech as prime minister to denounce President Biden's Iran policies and claim that Bennett would be too weak to stand up to Washington.
As Bennett spoke, Netanyahu allies repeatedly interrupted him.
Meanwhile, under a coalition deal, Bennett and Yair Lapid will both hold vetos on the government's policies, and Lapid will rotate in as prime minister after two years.