He made the remarks in a televised speech in Beirut's southern suburbs where people were celebrating the final stage of the post-2006 war reconstruction process.
"The era in which we are afraid and they are not is over," Nasrallah told supporters on Friday.
The Hezbollah secretary general said that the resistance group is "capable of striking very specific targets not only in Tel Aviv but everywhere in occupied Palestine."
“In the previous war we did not hit the Tel Aviv so we could protect the capital Beirut, but I told the Israelis that in any upcoming war if they hit any target in Beirut’s southern suburbs we will target Tel Aviv.”
"For every building destroyed in Dahiya [an area in the suburbs of southern Beirut], a building will be destroyed in Tel Aviv," he said.
Nasrallah added that Israel was seeking to "crush the resistance" during the 33-day war but "the war has failed to achieve its goal."
"The Israeli enemy has tried to make our lives hell," he added.
Around 1,200 Lebanese, mostly civilians, and more than 160 Israelis were killed after Israel launched a war against Lebanon in 2006.
"Today we celebrate the victory of restoration after the war," the Hezbollah chief said.