The 1985–86 Liga Alef season saw Hapoel Beit She'an (champions of the North Division) and Hapoel Dimona (champions of the South Division) win the title and promotion to Liga Artzit. Beitar Nahariya also promoted after promotion play-offs.
Tzafririm Holon merged with Liga Artzit club, Hapoel Holon. thus, leaving the league with 13 clubs.
Beitar Nahariya promoted to Liga Artzit.