Quickfire goals from Bruno Fernandes and Cristiano Ronaldo at the end of the first half saw the reigning European Champions go in two goals to the good at the break in a dominant display in Lisbon.
Cancelo and Fernandes then added two further strikes late in the second half to see Portugal finish their European Championship warmup matches in style.
Bernardo and Cancelo combined expertly in the buildup to the game’s 42nd minute opener, with the midfielder finding the full-back’s driving run in behind the Israeli defence with an inch-perfect pass down the right.
Cancelo then cut the ball back into the path of the onrushing Fernandes who found the bottom corner without breaking stride to hand the hosts a deserved advantage.
The Manchester United midfielder then went from scorer to provider in a devastating two-minute spell, threading in Ronaldo to double the lead with a powerful near-post drive.
While Dias was rarely called into action in a dominant display, the centre-half gained valuable minutes at the heart of the Portuguese defence before being substituted just after the hour for Paris Saint-Germain’s Danilo.
The lively and inventive Bernardo was substituted on 72 minutes, while the impressive Cancelo played the full 90.
And there was just enough time for the versatile City full-back to get the goal that his performance deserved when he cut inside off the right wing in the 86th minute and curled a delightful effort in at the far post.
Fernandes then grabbed his second and a Selecao's fourth on the night in stoppage time with an emphatic drive into the top corner from the edge of the box.
The convincing victory will provide Portugal with an important confidence boost before they pit their wits against two fellow European heavyweights in France and Germany as well as a solid Hungary side in Group F.
The first match of their European Championship defence sees them lock horns with the Magyars on Tuesday 15 June in Budapest’s Ferenc Puskas Stadium.