The opening was attended by the Moroccan Minister Delegate for Foreign Affairs, Mohsen Jazouli.
The Israeli minister is on a two-day visit to Morocco.
Yair Lapid published pictures of him on Twitter officially opening the Israeli liaison office in the capital, Rabat, and then headed to Casablanca, where he is scheduled to visit the Temple of Bethel.
Lapid met with his Moroccan counterpart, Nasser Bourita, and the two countries signed an air services agreement, and another agreement for cooperation in the fields of culture, sports, and youth.
They also signed a memorandum of understanding on the establishment of a mechanism for political consultation between the two countries' foreign ministries.
US Secretary of State Anthony Blinken tweeted that the US congratulates Morocco and Israel "on reopening the Israeli Liaison Office in Rabat. We will continue to work with Israel and Morocco to strengthen all aspects of our partnerships."
Earlier, Lapid praised the resumption of relations between Morocco and Israel, saying that "without the courage of King Mohammed VI, we would not be here."
The Israeli minister said that the agreements will bring innovation and everything that serves children and grandchildren for years to come. "We make the world better, teach them a lesson about the power of hope and fight poverty, ignorance, epidemics and diseases."
During the press conference, Lapid stated that the Jews have lived in Morocco for three thousand years, and this was in peace and deep friendship with the Moroccans.
He added that many Israelis view Morocco as part of their childhood and identity, because they lived in the country, and "do not come here as tourists, but as families and families."
Last year, Morocco was the fourth Arab country to sign a peace agreement and establish diplomatic relations with the Hebrew state last year, after the UAE, Bahrain and Sudan.