Several Knesset members from the Labor Party, Kadima and the Likud were absent from the voting.
After the Knesset's approval, Lieberman was sworn in and joined the government table.
Two MKs from the Pensioners Party, Moshe Sharoni and Itshac Galantee, were the only two coalition members who voted against the motion.
Pensioners Party Chairman Minister Rafi Eitan, National Union MKs and Labor MKs Danny Yatom, Michael Melchior and Shelly Yacimovich and Labor Minister Ophir Pines-Paz were absent from the voting. Other MKs were absent for political reasons.
Lieberman shakes hands with his fellow ministers (Photo: Gil Yohanan)
MK Otniel Schneller (Kadima) defended Lieberman's appointment and gave the example of former Prime Minister Benjamin Netanyahu, who appointed Rehavam Zeevi as minister for strategic threats in his government in an attempt to gain his support.
"Then it was for political survival. Now there really is a strategic threat," Schneller explained.
While the votes were being counted, MK Jamal Zahalka (National Democratic Assembly) took advantage of the break and shouted, "I hope you are also counting the Arab votes."
'Attempt to assassinate Israeli democracy'
During the Knesset session, Knesset Member Zahava Gal-On (Meretz) said that "the entry of this unrestrained and irresponsible man into the government is a real attempt to assassinate the Israeli democracy.""This is backed by the Labor Party, which is only interested in political survival and jobs," she added.
Knesset Member Ronit Tirosh (Kadima) welcomed Avigdor Lieberman's inclusion into the government, saying that "in order to create a sane and more stable coalition, it was the right thing to add the Israel Our Home party."
Tirosh called on the Arab Knesset members "not to defame Lieberman based on his opinions, and examine him based on his actions as part of the government."
Lieberman joins government table (Photo: Gil Yohanan)
Earlier Monday, during a three-minute session, the government approved the appointment Lieberman as minister for strategic affairs, signaling the inclusion of the hawkish party in the coalition.
Ministers also approved the appointment of Labor MK Ephraim Sneh as deputy defense minister.
Science, Sports and Culture Minister Ophir Pines-Paz, who later announced his resignation, voted against the move, as ministers of the Pensioners' Party voted in favor despite threats to vote against is they are not given the Welfare portfolio.
Prime Minister Ehud Olmert said that Lieberman "will be in charge of collecting the strategic intelligence in Israel."
"None of the ministers' prerogatives …will be changed by Lieberman's addition to the government. There is no change in the government's principles either," Olmert added.