President Trump promised the 250 guests on Thursday evening that the evening would be "all about Jerusalem".
He added: "Well I know for a fact there are a lot of happy people in this room.
"I think this one will go down as especially special."
Christian vice-president Mike Pence, Sheldon Adelson, the hotel magnate and Zionist donor, and Jewish Republican legislators were among those who attended and ate kosher lamb chops, just as in past years, for White House Hanukkah parties.
However no Democratic congress people were invited to the event, despite the fact that 28 of the 30 Jewish House members are Democrats.
Representatives from Jewish groups, who disagree with Mr Trump recognising Jerusalem as Israel's capital, were also omitted from the guest-list.
Bishop Munib Younan from the Evangelical Lutheran Church in Jordan and the Holy Land told Premier that Mr Trump's decision "added fuel to the fire".
He was one of 13 Christian leaders in Israel who wrote an open letter to the President asking him to promote peace instead of destruction.
Meanwhile, Two Hamas members have been killed in Israeli air strikes following a rocket attack on Israel, Gaza officials said.
The Israeli military said it targeted four Hamas facilities early Saturday in response to rockets fired the previous day, including one that landed in the town of Sderot without causing casualties or major damage.
Israel considers Hamas responsible for all rocket fire emanating from Gaza, which is home to other armed groups.
Palestinians also clashed with Israeli troops in dozens of West Bank hotspots on Friday and along the Gaza border.
