Israel has successfully tested a system to intercept short-distance rockets and plans to deploy it later this year.
Defence ministry officials said on Tuesday evening the system is designed to stop incoming projectiles, such as rockets fired at Israel by Palestinians in Gaza and Hizbollah in Lebanon.
Military experts say the system is effective at distances of about 5km to 70km from the point of launch.
The ministry said it would change Israel's strategic position.
The missile shield, developed by state-owned Rafael Advanced Defence Systems Ltd, uses radar-guided missiles to blow up rockets and mortars in mid-air.
The BBC reports Israel already has a defence system against long-range missiles and is working on a medium-range one.