It said strong measures had been taken against Hezbollah supporters suspected of fundraising within Germany for the Lebanese group, but that more needed to be done.
“It is unacceptable that Hezbollah is waging a terrorist fight against Israel in the Middle East, which is being financed through worldwide criminal activities, among other things,” said Mathias Middleberg, a spokesman for Ms Merkel’s CDU, in a statement before the vote took place.
“In view of Germany’s special responsibility toward Israel, we call on the government to ban all activities for Hezbollah in Germany.”
Britain, Israel and the United States are among a number of countries that enforce a total ban on Hezbollah’s activities. Many European countries, including Germany, outlaw only the group’s military arm.
To date, the European Union has included only Hezbollah’s military wing on its list of terrorist organisation.
The German Union of Jewish Students was among Jewish groups welcoming Thursday’s motion, calling it a “correct and important step from the German Bundestag”.