The bill aims to make it an offence to import or sell goods or services from Israeli settlements. If passed, Ireland would become the first European country to ban settlement goods.
Senators voted 25 to 20 Wednesday in favor of the proposal, which still needs to be debated and voted on in Parliament's Lower House. That is expected to take months.
The Irish government strongly opposes the measure, saying there should be a common European Union response.
In a statement, Israel's Foreign Ministry criticized the Irish Senate for supporting "a populist, dangerous and extremist anti-Israel boycott initiative."
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.