In recent years, the path of the Turkish-Israeli relationship has been redirected. What was once a strong alliance between the only two democratic countries in the Middle East is now facing serious stress. The alliance was originally based upon military benefits for Turkey, and recognition for Israel. The most vivid example of the change is the Flotilla incident in may 2010. A flotilla was sent illegally from turkey to try to end the embargo Israel placed on Gaza. The decline has been an accumulation of different factors. With changes in the Turkish parliament in 2002, and the rise of the AKP in Turkey, the priorities of Turkish foreign policy changed. Turkey started to focus eastward in gaining global recognition as a global superpower. There was heightened attention on the Palestinian Israeli conflict, and the AKP took a polarized stance, not in the favor of Israel. The relationship between Israel and Turkey has suffered, after exploring the reasons as to why this has happened; this thesis focuses on analyzing which country will suffer more from the loss. Nevertheless, Both nations have their interests at stake, and the cost of this decline will be felt by both nations.