Rabbi Michael "Miki" Mark, 48, was murdered on July 1, 2016 and his wife Chava and two of their 10 children were badly wounded in a shooting attack in the southern West Bank.
The Palestinian rescuer and his wife, who have requested to remain anonymous, helped the surviving Mark family escape their overturned vehicle and provided first aid until first responders arrived on the scene.
A resident of the Hebron area, the Palestinian man initially received a temporary visa to live and work in Israel after receiving death threats in his West Bank hometown.
His visa was not renewed, however, leaving him stuck in limbo in Israel from August 2018, unable to work.
Following a Channel 12 report about his and a campaign by several Israelis that included settler leaders, he was awarded Israeli residency on Tuesday along with his wife and son.
Interior Minister Aryeh Deri praised him for his “selfless, noble” actions and said he would now be able to begin a new life in Israel, presenting him with his identity documents.
West Bank settler leader Yossi Dagan, the head of the Samaria Regional Council, who campaigned on behalf of the Palestinian man, said it was the “moral and righteous thing to do for a man who risked his life to save Jews.”