“His Nobel Peace Prize was remarkable and a huge achievement and should be the basis on which we strive to bring about a permanent, long-term peace in the whole region, particularly in Israel-Palestine.”
Mr Corbyn had been heavily criticised for failing to say the word “Israel” at the same event at last year’s conference.
But he was applauded by the crowd in Liverpool after thanking Labour supporters who had reported antisemitic incidents to the party for investigation.
“People have come and talked to me, and others in my team, about the antisemitism that does exist in society, that has reared its ugly head in various places, and have helped to advise and inform us of how we deal with antisemitism,” Mr Corbyn said.
He had initially been booed when he was introduced to the audience alongside Emily Thornberry, the Shadow Foreign Secretary, but repeatedly expressed his delight at being invited to address the event.
Mr Corbyn said: “I want to thank Labour Friends of Israel for their contribution in building awareness of the different dimensions of the Middle East conflict, and the crucial debate about how to achieve a peaceful long-term settlement.”
In conciliatory comments, he also thanked MP Joan Ryan, LFI chair, and Israeli ambassador Mark Regev, who appeared at the event alongside him.
Mr Corbyn added: “I’m genuinely glad to be here today to come together to campaign for a two-state solution for both Israelis and Palestinians. I hope that will be achieved.
“Last night I spoke to Labour Friends of Palestine and the Middle East, as you know. I voted for recognition of the state of Palestine in the Commons. I think that is an important step forward.”
He said he wanted his shadow foreign team to play a constructive part in working towards peace.
Mr Corbyn concluded by wishing the crowd “shana tova ahead of next week’s Rosh Hashanah”.
Earlier, in comments clearly directed at the Labour leader, Knesset member Michal Biran said from the podium: “Hamas are not friends. They are not freedom fighters.
"They do not have the best interests of the Palestinian people at heart. They are antisemites, they oppress the Palestinian people, subjugate women, murder gay people and deny human rights to the people of Gaza. They are part of the problem, not the solution.”
Mr Corbyn did not react as Ms Biran received a standing ovation for urging him to visit Holocaust museum Yad Vashem.
Jewish Labour activists said Mr Corbyn had spoken well at the event, and said they felt he was taking their concerns more seriously than during the past year.
One LFI source said the "bar was low" in expectation of Mr Corbyn's speech, but acknowledged he had repeatedly talked about Israel and the group's work.
Mr Regev said Labour should not allow "hate speakers" in the party and also expressed his thanks to Labour for supporting the Balfour declaration and early Zionist efforts.
John McDonnell, the Shadow Chancellor, was pictured alongside members of the youth wing of Israel's Labour party at the event.
The event was attended by around 200 people, including a number of Labour MPs. Among them were Wes Streeting, Luciana Berger, Stephen Pound and Louise Ellman. There was also a large turnout of Palestine Solidarity Campaign supporters and activists.
