In Judaism, "Israelite", broadly speaking, refers to a lay member of the Jewish ethnoreligious group, as opposed to the priestly orders of Kohanim and Levites. In legal texts, such as the Mishnah and Gemara, ישראלי (Yisraeli), or Israelite, is used to describe Jews instead of יהודי (Yehudi), or Jew. More @Wikipedia
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