Rabin ousted Peres as Labor party leader in 1992 and led Labor to victory in the national elections, becoming prime minister and defense minister.
Rabin played a key role in peace negotiations between Israel and its Arab neighbors, and in 1993 he endorsed a historic peace agreement with the Palestine Liberation Organization (PLO), providing for mutual recognition and a transition to Palestinian self-rule in the Gaza Strip and West Bank.
Rabin, along with Peres and PLO leader Yasir Arafat, received the Nobel Peace Prize in 1994.