This essay examined how bilingual peace education can promote peaceful behaviours and social integration among otherwise segregated Arab- Israelis and Jewish- Israelis. By using The School for Peace at Neve Shalom/ Wahat al-Salam as a case study, accompanied with Jürgen Habermas theory of communicative action and New institutionalism with a conflict critical approach, we observed the behavioural mechanisms of institutions and social interactions. The empiric data consisted of three interviews conducted by author Nava Sonnenschein from the book The Power of Dialogue between Israelis and Palestinians. The interviewed students from The School for Peace had experienced both conventional education and bilingual peace education in adulthood. We found that informal values and narratives in educational institution influence the behaviours of its students. We also found that interactions between Arab- Israelisand Jewish- Israelis in the context of bilingual peace education promoted recognition of commonalities. While conventional education generally formed hostile behaviours and segregating incitements, the bilingual peace education gave opportunities for interactions and acknowledgement of both ethnic groups; consequently, leading to self-reflection, mutual understanding, peaceful behaviours and social integration.