In 1925, the largest and most important Yeshiva in Kovna, Lithuania moved to Eretz Yisrael. Following a short stay in Jaffa, the Yeshiva settled in Hebron. The Rosh Yeshiva was Rav Moshe Mordechai Epstein. Rav Natan Tzvi Finkle, one of the most important leaders of the Musar movement, was Mashgiach, the spiritual director.

In Hebron the Yeshiva originally numbered about 120 students. By 1929 there were close to 200 students. Yeshivat Knesset Yisrael turned out to be the largest Yeshiva in Israel. Men from Europe, America and Israel studied here. They excelled in Torah study and were famous for their modern, fashionable dress. Many of the Yeshiva's students were later recognized as major Torah scholars.

For the short time that the Yeshiva, and other accompanying institutions were in Hebron, they brought about a notable spiritual and economic renewal to the city, which had suffered greatly following the first World War.