Three of Israel's five stealth fighters took to the skies along the Mediterranean coast off Tel Aviv as thousands of people gathered at the waterfront to watch.
The F-35s, made by US-based Lockheed Martin, were the highlight of the show, which marked 69 years of Israeli independence.
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It plans to purchase a total of 50 F-35s. Its first jets are to be operational this year.
While other countries have ordered the planes, Israel — which receives more than $3 billion a year in US defence aid — says it will be the first outside the United States with an operational F-35 squadron.
Israel is buying its first 33 F-35s at an average price of about $110 million (103.5 million euros) each — and the price tag has been criticised both in Israel and elsewhere.
Among its main features are advanced stealth capabilities to help pilots evade sophisticated missile systems.
The single-pilot jets can carry an array of weapons and travel at a supersonic speed of Mach 1.6, or around 1,200 miles per hour (1,900 kilometres per hour).
The pilot's ultra-high-tech helmet, at a cost of about $400,000 each, includes its own operating system, with data that appears on the visor and is also shared elsewhere.
Thermal and night vision as well as 360-degree views are possible with cameras mounted on the plane.
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