Israel says a vote upgrading the Palestinian status at the United Nations is "negative political theatre" that will "hurt peace".
Government spokesman Mark Regev said on Friday the move had taken Palestinians and Israelis out of a negotiating process.
The General Assembly voted 138-9 in favour on Thursday to recognise the Palestinians as a non-member observer state. Another 41 nations abstained.
The Palestinians can now take part in UN debates and potentially join bodies like the International Criminal Court.
Palestinian President Mahmoud Abbas said it was the "last chance to save the two-state solution" with Israel.
The BBC reports two decades of on-off negotiations between Israel and the Palestinian Authority in the West Bank have failed to produce a permanent settlement. The latest round of direct negotiations broke down in 2010.
