Palti was born in Tel Aviv and was raised in Ramat HaSharon, where he studied at the "Rutberg" High School. In 1982 he was drafted into the IDF Intelligence Corps. During his service, he served as an intelligence officer in the Golani Infantry Brigade, chief-of staff to then-deputy IDF chief of staff, Major General Matan Vilnai, intelligence officer in the Judea and Samaria Division, and head of Counter Terrorism arena in the IDF Intelligence Corps. In his final IDF posting, Palti served as deputy head of the Intelligence Corps' Research Division.
In 2006, Palti began working at the Mossad intelligence agency at the request of then-director, Meir Dagan, who appointed him head of the Counter Terrorism division within the organization's intelligence branch. In 2010, he was appointed head of the Mossad's strategic research division. In 2011, he was appointed by then-director Tamir Pardo as head of the intelligence directorate.
In 2016, Palti finished his tenure and went on to be a senior research fellow at Harvard's Belfer Center. In February 2017, a professional committee, chaired by Ministry of Defense Director General, Gen. (res.) Udi Adam, recommended that Palti be selected to serve as head of the ministry's Political-Military Bureau. Minister of Defense Avigdor Liberman approved the recommendation.[1]