The test was done with the cooperation of the American Missile Defense Agency (MDA), Israel Aerospace Industries and the Israeli Air Force.
The Arrow 3 missile defense system is meant to intercept ballistic missiles outside of the atmosphere.
According to the Israeli Defense Ministry the tests were done in Alaska "to carry out tests of the system's capabilities that can't be done in Israel."
Netanyahu bragged about the success of the tests during a government meeting on Sunday, "The execution was perfect. Today Israel has the capacity to act against ballistic missiles launched at us from Iran or anywhere else."
These tests come after Iran tested a medium-range ballistic missile last week. The tests are no doubt a warning to Iran, showing them Israel has the full support and cooperation of the US military.