Describing herself as a "proud Jew and a proud Israeli", the Wonder Woman star - who at times has paid a personal price for her advocacy - said she would donate the $US1 million ($A1.5 million) prize to organisations committed to helping Israel recover from the trauma of its two-year war against Hamas.
"Israel has endured unimaginable pain," she said in a statement released by the prize on Tuesday.
"Now we must begin to heal - to rebuild hearts, families and communities."
The Genesis Prize, nicknamed "the Jewish Nobel" by Time magazine, is granted each year to a person for their professional achievements, contributions to humanity and commitment to Jewish values. Winners have donated the award to promote causes close to their hearts, such as battling antisemitism, advancing women's rights or fighting for economic justice.
The war in Gaza erupted with Hamas' October 7, 2023, attack, in which militants killed some 1200 people in southern Israel and took over 250 others hostage.
While Israel received some international sympathy in the early days of the war, global opinion quickly turned against it as its retaliatory offensive intensified.
Health officials in Gaza say over 69,000 Palestinians have been killed, and the territory has suffered widespread destruction.
Israel and Hamas agreed to a ceasefire last month.
The negative sentiment toward Israel has reverberated in Hollywood, where hundreds of industry workers, including some leading directors and actors, recently pledged to boycott the Israeli film industry.
Throughout the war, Gadot, who served in the Israeli military after high school, remained a fervent advocate for Israel. She campaigned for the release of hostages held by Hamas, met with hostage families and released hostages and helped promote the screening in Los Angeles of a graphic film documenting the Hamas attack.
At times, she has faced pressure and criticism for this support.
Gadot, who played the wicked stepmother in Snow White, has said she believes anti-Israel sentiment was a factor in the poor performance of the film early this year.
When she received a star on the Hollywood Walk of Fame last March, supporters of Israel and of Palestinians clashed nearby. And in August, hundreds of people from the film industry signed a letter calling on the Venice Film Festival to withdraw an invitation to Gadot. The festival's director rejected the call, though Gadot did not attend.
Stan Polovets, the co-founder and chair of the Genesis Prize Foundation, praised Gadot's "moral clarity and unwavering love for Israel", saying it had come at great personal and professional risk.
A date for the awards ceremony next year was not immediately announced. The most recent winner, Argentine President Javier Milei, came to Jerusalem in June to receive the 2025 award.
Previous winners include former New York City Mayor Michael Bloomberg, actor Michael Douglas, director Steven Spielberg and singing icon Barbra Streisand.
