The test was conducted jointly by the IAF and the US Missile Defense Agency. The Arrow is a project developed in cooperation by the IAI and Boeing.
The defensive missile was launched around 11 a.m. from the army's Palmahim base near Ashdod, and intercepted a Blue Sparrow missile fired by a fighter jet and impersonating a Shihab 3.
In other anti-missile news, the United States recently had a successful test of an Airborne Laser (ABL.) Here's a video explaining how it works.
Crossposted on Soccer Dad.