1. Marzipan Bakery — Near Machane Yehuda market
The most famous rugelach in Israel, sold warm from the tray since 1963.
Marzipan has been baking near the Machane Yehuda market since 1963, and its chocolate rugelach are probably the single most famous baked item in Israel. They are small, dark, heavily glazed with sugar syrup, and best eaten within minutes of coming out of the oven — which is precisely how the shop sells them.
This is not the dry, crisp rugelach of an American Jewish bakery. The Israeli version is soft, almost wet, and closer to a small enriched pastry roll. The apple and cinnamon versions have their devotees, but chocolate is what people queue for.
It is a counter operation with nowhere to sit. Buy by weight, eat immediately, and do not plan on carrying them home in good condition.
Good to know: Ask for a tray that has just come out — warm rugelach are a completely different thing from ones that have sat.