"The only alternative to American leadership is a dramatically more dangerous and anxious world," he told a joint session of the US Congress in his annual agenda-shaping State of the Union speech.
Facing some of the worst second-term poll numbers of any US president in a generation, President Bush hopes the speech will shore up confidence in his policies ahead of November Congressional elections.
On issue after issue, including free trade, Iraq and the war on terror, President Bush couched opposition to his leadership as an unaffordable retreat that risked making the United States less safe and less prosperous.
"In a time of testing, we cannot find security by abandoning our commitments and retreating within our borders," he said.
"The road of isolationism and protectionism may seem broad and inviting, yet it ends in danger and decline."
Oil addiction
On the issue of oil President Bush said the US faces a serious problem “America is addicted to oil, which is often imported from unstable parts of the world," like the Middle East.
He announced that he would seek increased funding for alternative energy sources with the goal of replacing 75 percent of US oil imports from the Middle East by 2025.
International agenda
Despite a victory by Hamas in the Palestinian elections the President dismissed criticisms that the victory of the radical group Hamas in Palestinian elections called into question the wisdom of his push for spreading democracy worldwide as the antidote to terrorism.
"Our nation is committed to an historic, long-term goal … we seek the end of tyranny in our world ... the future security of America depends on it," he said, echoing the theme of his inauguration speech one year ago.
"Now, the leaders of Hamas must recognize Israel, disarm, reject terrorism, and work for lasting peace," he said, without renewing his warning that US aid hinged on meeting those demands.
He also called on US allies Egypt and Saudi Arabia to embrace deeper democratic reforms and predicted, "Liberty is the future of every nation in the Middle East, because liberty is the right and hope of all humanity."
Path in Iraq
Amid calls for a US withdrawal from Iraq President Bush rejected any hasty retreat saying "the road of victory is the road that will take our troops home". He said he hoped that "progress on the ground" in training Iraqi security forces would enable him to bring US soldiers home.
Pledge on Iran
Despite deep tensions with Iran over its nuclear activities, President Bush balanced a promise that Tehran will not get atomic weapons with a rare message aimed directly at the Iranian people, saying "America respects you, and we respect your country."
"We respect your right to choose your own future and win your own freedom. And our nation hopes one day to be the closest of friends with a free and democratic Iran," he said.
Domestic issues
On the domestic front, he used the televised speech before millions, to call for a bipartisan commission to study the solvency of the Social Security retirement system, as well as the Medicare and Medicaid health insurance programs.
He also used the speech to call on Congress to pass a ban on human cloning, saying it was an abuse of medical research.
"Tonight, I ask you to pass legislation to prohibit the most egregious abuses of medical research… human cloning in all its forms," he said.
He mentioned creating and implanting embryos for experiments, creating human animal hybrids and buying, selling or patenting human embryos.
"Human life is a gift from our Creator and that gift should never be discarded, devalued, or put up for sale," President Bush said.