"It cannot be that there will be a group within the military that threatens the elected government: 'If you do not do what we want, we will shut the switch on security,'" Netanyahu said at the weekly cabinet meeting in Jerusalem on Monday.
He said the call for conscientious objection and the conscientious objection itself were against the law.
"In a democracy, the military is subject to the elected government and not the opposite," he said.
Several thousand reservists from different branches of the army have announced in recent weeks that they would not return to duty if the government implemented its plan.
"Refusal to serve endangers the security of every citizen of Israel," Netanyahu said.
Reservists make up a large part of the Israeli army.
"The government will take action against it and take all necessary steps to ensure our security and our future," Netanyahu went on to say without elaborating on possible measures.
Netanyahu's coalition plans specifically to weaken the independent judiciary in the country.
It accuses it of having too much influence on political decisions.
Next week, an important part of the judicial reform to restrict the Supreme Court is to be passed in parliament.
Critics see the separation of powers and thus democracy in danger.
Some even warn of the creeping introduction of a dictatorship.
The protest movement in Israel announced another "Day of Resistance" for Tuesday.
At the end of March, Netanyahu initially suspended the reform plans after massive pressure, including from the military, but put them back on the agenda last month.