"Israeli civilians are at the forefront of a war against terrorism and must also be on maximum alert," he said after a visit to a police headquarters in Jerusalem.
"The goal of terrorism is to spread fear, and the way to defeat it is to maintain composure and resilience on both a national and personal level," his office quoted him as saying.
Violence has rocked Israel and the West Bank for days after a series of attacks by Palestinians and clashes between protesters and Israeli security forces.
"We have known worse times than this and we will overcome this new wave of terror by maintaining our determination, responsibility and unity," Netanyahu said.