The paper adds to the body of recent scholarly literature that emphasizes the role of domestic publics in public diplomacy – a field until recently examined with only minor attention to the domestic realm. It suggests conducting an analysis of the domestic dimension of public diplomacy on three levels: individual, organizational, and national. By doing so, we are able to understand in a complex manner the environment from which public diplomacy practice grows, and thus also its specific dynamics. Applying this model of analysis to the case of Israel, the paper describes major domestic factors shaping Israeli public diplomacy: the culture of individual engagement (individual level), the clash of organizational ethea of institutions responsible for public diplomacy (organizational level), and the intertwining of public diplomacy and nation-building (national level). The analysis also allows us to better grasp the dilemma faced by Israeli public diplomacy between efficiency and democratic character