The 1660 destruction of Tiberias occurred during the Druze power struggle in the Galilee, in the same year as the destruction of Safed. The destruction of Tiberias by the Druze resulted in abandonment of the city by its Jewish community, until it was rebuilt by Zahir al-Umar in early eighteenth century. Altshuler however attributes the destruction of Tiberias in 1660 to an earthquake. The destruction could have also been a combination of both events.
As the Ottoman Empire expanded along the southern Mediterranean coast under sultan Selim I, the Catholic Monarchs began establishing Inquisition commissions. Many Conversos, (Marranos and Moriscos) and Sephardi Jews fled to the Ottoman provinces, settling at first in Constantinople, Salonika, Sarajevo, Sofia and Anatolia. The Sultan encouraged them to settle in Palestine. In 1558, a Portuguese-born marrano, Doña Gracia, was granted tax collecting rights in Tiberias and its surrounding villages by Suleiman the Magnificent. She envisaged the town becoming a refuge for Jews and obtained a permit to establish Jewish autonomy there. In 1561 her nephew Joseph Nasi, Lord of Tiberias, encouraged Jews to settle in Tiberias. Securing a firman from the Sultan, he and Joseph ben Adruth rebuilt the city walls and laid the groundwork for a textile (silk) industry, planting mulberry trees and urging craftsmen to move there. In 1624, when the Sultan recognized Fakhr-al-Din II as Lord of Arabistan (from Aleppo to the borders of Egypt), the Druze leader made Tiberias his capital.