In 1955, he returned to Israel, where he was appointed Deputy Chief of the General Staff and Senior Staff Officer, however, after a series of professional disputes with Moshe Dayan, he was demoted to Commander of the Armored Corps. During the 1956 Sinai Campaign, he commanded the 77th Division, which operated on the Rafah–el-Arish–Kantara front. Upon the death of Asaf Simchoni, Chief of the Southern Command, in a plane crash, Laskov assumed his position, and oversaw the withdrawal of Israeli troops from the Sinai Peninsula.