The disastrous raid, in which 12 commando soldiers were killed, is known as the 'Shayetet catastrophe'.
In an especially vehement televised speech, Nasrallah also attempted to shift blame for the murder of Rafik Hariri to Israel.
Nasrallah said he had "evidence" that the state had tried to convince the Lebanese prime minister Hezbollah was trying to hurt him.
The Hezbollah chief also presented footage he claimed was filmed by an Israeli drone accompanying the IDF force, which shows the orchard in which the soldiers were ambushed. It also shows an IDF chopper arriving to carry the victims away.
He said the ambush was planned after Hezbollah succeeded in transferring footage from an Israeli observation drone to its war room. "It was a technical achievement for Hezbollah," he said.
"We succeeded in analyzing these pictures, and assumed Israel was planning on operating there," Nasrallah said. "Our men waited there for a few weeks, and on one of the nights the commando soldiers walked into the ambush we prepared."
Footage shown by Nasrallah
'Israel documented Hariri murder'
Nasrallah also presented "proof" that Israel was involved in Hariri's murder. He described what he claimed were exact times and locations in which Israeli drones appeared over Lebanese territory on the day before the prime minister's death, as well as on the day itself, in order to prove that Israel was documenting the murder from above.
Nasrallah also showed footage of a man he called Ahmed Nasrallah, whom he claimed is of no relation to himself, saying he had served as a spy for Israel.
The other Nasrallah, who was arrested by Hezbollah, was shown telling the camera that he had informed Hariri the group intended to carry out an attack against him and his family using a car bomb, after numerous failed attempts on his life.
"I promised I would convene a press conference to open up new horizons and help in accusing Israel of the assassination of Rafik al-Hariri, and that is what I am doing," Nasrallah said in the beginning of his speech.
"Since 1993 Israel has been trying, using its agents, to convince al-Hariri that Hezbollah was attempting to assassinate him."
Nasrallah claimed that Israel immediately blamed his organization for the murder. "Israel has the ability to carry out operations of this kind and all of its operations in and outside of Lebanon are evidence of this," he said.
"We recall many cases in which agents entered through the beaches and various ports. Israel had the motive and the interest. It is hostile to the entire resistance movement, especially Hezbollah, as well as Syria."
The Hezbollah chief explained that Israel "was trying to make Syria leave Lebanon and this was the backdrop for the Hariri murder".
"This blood was used to remove Syria from Lebanon and to harm the resistance. This is the motive and the interest," he added.
- Follow Ynetnews on Facebook