The World Court said on Friday that Israel's continued presence in the occupied Palestinian territories was illegal and that it should come to an end "as rapidly as possible".
It also said Israel must make reparations for damages caused by its occupation of the Palestinian territories.
The court underlined that it finds Israel systematically discriminates against Palestinians in the occupied territories.
The International Court of Justice (ICJ) on Friday ruled that the occupied Palestinian territories constitute a "single territorial unity," which will be protected and respected.
Stressing that The Hague regulations have become part of customary international law, and are thus binding on Israel, the court said, "Protection offered by the Human Rights Convention does not cease in case of armed conflict or occupation."
In reference to Israel's occupation of the Palestinian territories, the court noted that Israel's "exploitation of natural resources" in occupied Palestinian territory is "inconsistent with its obligation" to respect Palestinians' right to sovereignty.
More particularly on the forcible evictions in Eastern Jerusalem and West Bank, the court stressed that Israel's policies and practices violate the 4th Geneva Convention's prohibition on forcible transfer of protected populations.
"Israel's settlement policy is in breach of the 4th Geneva Convention," it said.
The court said Israel's policies and practices amount to the annexation of large parts of occupied Palestinian territory, and that it is "not convinced" that extending Israeli law to the West Bank and East Jerusalem is justified.
ICJ also maintained that Israel has been able to exercise key authority over the Gaza Strip despite the withdrawal of its military presence in 2005.