Nazi symbols have been worn in the past by Haredi Orthodox youths during demonstrations against drafting yeshiva students into the Israeli military.
A Knesset committee advanced a bill making the use of Nazi symbols and slogans in Israel illegal.
Other prohibitions include wearing a six-pointed gold star such as those required of the Jews by the Nazis and wearing in public striped clothing resembling what inmates wore in Nazi concentration camps.
Haredi Orthodox youths have worn such Nazi symbols during demonstrations against drafting yeshiva students into the Israeli military.
Under the legislation, using Nazi symbols and slogans would incur a six-month prison sentence and a $28,000 fine. Many countries in Europe have laws barring the use of Nazi symbols and slogans.