The Israeli-made Arrow system, developed with support from the United States, will form part of the broader European Sky Shield effort launched in the wake of Russia's 2022 full-scale invasion of Ukraine, which raised alarm over possible gaps in NATO's European air defences.
"For the first time, we are gaining the capability for early warning and defence against long-range ballistic missiles for our population and infrastructure," said Defence Minister Boris Pistorius.
"We are strengthening the European pillar of NATO and fulfilling a NATO planning objective," he added. "We are demonstrating that Germany is taking responsibility."
The deal to supply the Arrow 3 system inked in 2023 was described as Israel's largest-ever military export contract.
The system is designed to shoot down long-range ballistic missiles that fly above the Earth's atmosphere.
The system is made up of radar detection systems, launchers and arrays of interceptor missiles reportedly capable of hitting targets at altitudes of up to 100 kilometres (60 miles).
An Israeli delegation joined German military officials at the Holzdorf air base in eastern Germany for a ceremony formally commissioning the first pieces of the Arrow 3 system.
Wednesday's commissioning marked the first time an Arrow system has been deployed outside Israel, something that Germany's defence ministry described as "a clear signal of the close ties and partnership between Israel and Germany".
Further elements are expected to be deployed at additional locations in Germany once the system is fully operational.
According to Israeli media reports, Israel deployed its own Arrow 3 system to counter scores of Iranian ballistic missiles during clashes over the past year.
The Arrow 3 system gives Germany a long-range complement to the country's current medium-range Patriot systems as well as shorter-range Iris-T air-defence missiles.
A total of 23 other countries have signed up to the German-led European Sky Shield Initiative (ESSI), which was proposed by Berlin in August 2022.
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