Israel and Bahrain agreed to establish full diplomatic relations in a US-mediated deal.
With this, Bahrain has joined the United Arab Emirates in agreeing to normalise relations with Israel.
Most countries in the Arab world have boycotted Israel for the Israeli-Palestinian disputes.
However, Bahrain recognised Israel's right to exist in May 2018.
The other three Arab countries, which established diplomatic relations with Israel include Egypt in 1979, Jordan in 1994 and the United Arab Emirates in 2020.