Yossi Peled was born Jozef (Jeffke) Mendelevich in Belgium. During World War II, he and his sister were adopted by a Catholic family. All of his family except his mother died in Auschwitz concentration camp during the Holocaust. After the war, his mother reclaimed him, and they made aliyah to what became Israel with the assistance of the Jewish Brigade. Peled served in the Israel Defense Forces for 30 years.
He was appointed Minister without Portfolio in Netanyahu's government.