The International Court of Justice has described Israel's occupation of Palestinian territories as "unlawful."
The court in The Hague released an advisory opinion on Friday about Israel's occupation, which began in 1967.
It says Israel is under an obligation to immediately cease new settlement activities, and to evacuate all settlers from occupied Palestinian territory.
Israel continues to attack the Gaza Strip, and will likely come under more criticism now that the court has deemed the settlement policy to be illegal.
Israeli Prime Minister Benjamin Netanyahu responded in a statement on Friday, saying the ICJ cannot deny the legal right of Israelis to live in their ancestral home.