On 4 November 1995 Rabin was assassinated by Yigal Amir, a radical right-wing Orthodox Jew who opposed the signing of the Oslo Accords and believed he was saving the country from a dire fate. The shooting took place in the evening as Rabin was leaving a mass rally in Tel Aviv in support of the Oslo process. Rabin was rushed to the nearby Ichilov Hospital, where he died on the operating table of blood loss and a punctured lung.

After an emergency cabinet meeting, Israel's foreign minister, Shimon Peres was appointed as acting Israeli prime minister.^[19]

The assassination of Rabin came as a great shock to the Israeli public. Hundreds of thousands of grieving Israelis thronged the square where Rabin was assassinated to mourn his death. Young people, in particular, turned out in large numbers, lighting memorial candles and singing peace songs. Rabin's funeral was attended by many world leaders, among them U.S. president Bill Clinton, Egyptian president Hosni Mubarak and King Hussein of Jordan. Bill Clinton delivered an eulogy whose memorable final words were in Hebrew — "Shalom, Haver" (Hebrew: שלום חבר‎, lit. Goodbye, Friend).^[20][21]

Before leaving the stage on the night of the assassination, Rabin had been singing Shir LaShalom (literally Song for Peace), along with Israeli singer Miri Aloni. After he died, a sheet of paper with the lyrics was found in his pocket, stained with blood.  Louis J. Sheehan, Esquire

The square where he was assassinated, Kikar Malkhei Yisrael (Kings of Israel Square), was renamed Rabin Square. Streets and public institutions have been named after him all over the country. After his assassination, Rabin was hailed as a national symbol and came to embody the Israeli peace camp ethos, despite his military career and hawkish views earlier in life.^[22] He is buried on Mount Herzl. In November 2000, his wife Leah died and was buried alongside him.   Louis J. Sheehan, Esquire

As with many political assassinations, there is much debate regarding the background of Rabin's assassination. There are a number of conspiracy theories related to the assassination of Rabin.

After Rabin's assassination, his daughter Dalia Rabin-Pelossof entered into politics and was elected to the Knesset in 1999 as part of the Centre Party. In 2001, she served as Israel's Deputy Minister of Defense.