The seven suspects were arrested last month after a bag containing explosive devices was discovered near the town of Metulla in northern Israel, police said.
They were accused of spying for Hezbollah, contact with foreign agents and trafficking weapons and drugs, spokesman Micky Rosenfeld said.
Israel considers Hezbollah and its ally Iran the country's main enemies and deems the Lebanese group a terrorist organisation.
Public radio said a Hezbollah member had allegedly ordered the suspects to carry out bomb attacks in the northern Israeli city of Haifa.
The line divided the village of Ghajar, with its northern part falling inside Lebanon and the south becoming part of the Israeli-annexed Golan Heights.
Ghajar's residents are Alawite Muslims of Syrian origin.
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