In 2005, a municipal ban attempted to halt the parade, but it was overturned by a district court order.

The legislation was again introduced in 2008, but again did not become law, and in June 2008, the Supreme Court of Israel denied petitions to stop gay pride parades in Jerusalem, and a parade was held in 2008 and in 2009. In 2007, the Knesset approved legislation to prevent pride parades in Jerusalem, and in response, then- Prime Minister of Israel Ehud Olmert's office released a statement that he 'does not think that Jerusalem is the appropriate location for holding gay-pride parades due to the special sensitive nature of the city, although he believes that such matters should not be limited by law'. Since 2002, it has held small annual gay pride parades in Jerusalem. The Jerusalem Open House for Pride and Tolerance is the focal point of gay pride events in Jerusalem, and has existed since 1997. In 2005, 100,000 people participated in the Tel Aviv gay pride parade.

Tel Aviv was first city in Israel to have a gay pride parade, which started in the street of Shenkin and expanded to large-scale events in the following years. Tel Aviv had previously been the venue for the only yearly gay pride parade in the Middle East. Since the 1990s, an annual pride parade has taken place in Tel Aviv and sometimes also in Eilat.