With the intervention of then chief rabbi of Palestine Avraham Hacohen Kook, he was released and granted an immigration certificate to Palestine by the Mandatory authorities. He arrived in Jerusalem in 1933, and studied at Mercaz Harav for five years.
In 1938 he was appointed the chief rabbi of the Hapoel Hamizrahi settlement at Kfar Haro'eh, where he served for 28 years and was among the founders of the Bnei Akiva yeshiva there.
In 1965, Yisraeli was appointed a member of the Supreme Rabbinical Court, on which he served until 1990. During this period he also taught at Mercaz Harav, the flagship yeshiva of the national religious camp.
In 1987, Yisraeli became the head of the Eretz Hemda, a prestigious Jerusalem kollel (teachers college) that trains yeshiva students as rabbis, rabbinical court judges and teachers.
Yisraeli wrote a number of books and for 13 years edited a journal dealing with halachah as it pertains to modern problems. His best-known work is a book of homilies called Eretz Hemda. He received the Israel Prize for Jewish studies in 1992.