The research composed of six chapters: the first one related to the terminology of the concepts ???Palestinian Arab citizens of Israel???, ???Arab citizens of Israel??? and ???Arab community in Israel???. The second chapter was introduction and the third one was historical background of the Arab community in Israel. The fourth chapter discussed the current status, the legal, socio-economic and political status of Palestinian Arab citizens in Israel. The fifth chapter dealt with the issue of the Palestinian Arab in Israel and the Middle East peace. The recommendation for a participatory resolution of the conflict was dealt in the last chapter.