This study is an attempt to comprehend how Palestinians and Israelis perceive the conflict and the peace process. It identifies the channels and dynamics related to the shaping of their perceptions on the individual, community, and political levels. The main objectives of this study are to probe the degree of homogeneity between these levels for both Palestinians and Israelis as well as the degree of discord between them on the same levels and to pinpoint intervening factors that contribute to carving out the ultimate perceptions that individuals hold. Unlike previous work, this study employs a multi-method approach to measure and benchmark of the topic at hand. To bridge further gaps, a developed matrix extends the analyses on temporalspatial dimensions of individuals’ cognitions, affections, and behaviors pertaining to the conflict. This study falls within the descriptive research that seeks probing the effect of macro-level factors (the media, and political parties/leaders) on microlevel ones (the audience cognitive processing), and is involved in describing and identifying its elements and components through the collection and analysis of data. Interpretation of data is based on a combination of content analysis for eight major newspapers, two public opinion surveys and a document analysis affiliated to the main four political parties. The analysis of the Palestinians and Israelis’ perspective of the conflict and the peace process revealed that the actual conflict has three main dimensions: First, the struggle between individuals, which is full of self-contradictions, as each party describes a conflict in a way different than the other. It is a conflict, in which the past and present of the two sides of the conflict are different - the bitter past itself with different narratives, yet the motives are the same but conducive to different results. Whereas each party is blaming the other on these three levels, the conflict is rooted in different forms, but intertwined with one another. Both nations differ entirely in prioritizing the core issues of the conflict. For example, the study reveals that for Palestinians the issue of Jerusalem ranks first, followed by the issue of releasing of prisoners. The issue of the refugees ranks third, and paradoxically recognizing Israel as a Jewish state ranks last according to Palestinians. As for the Israelis, the issue of security and safety ranks first, the recognition of the Jewishness of their state ranks second, followed by the issue of Jerusalem that comes in the third place, whereas and at loggerheads with the Palestinians’ aspirations, the establishing of a Palestinian state on the 1967 borders ranks last on their part. The same applies to the proposed solutions of the conflict. The future is fuzzy, and everyone sees the most appropriate solutions that fit their own interest, as a part of the zero-sum game. Both peoples yearn for peace, and both peoples are tired and bored of the conflict, but the majority in both sides, however, are not willing to make concessions towards this end and consequently are not optimistic in reaching peace in the near future. Furthermore, each party does not view the political leadership of the other party as a partner for peace. Secondly, a media conflict, where the analysis illustrates a similarity in the issues raised in the Palestinian and Israeli newspapers, but there were distinct statistical differences in the extent of coverage and in the display of those issues and their interpretation between the Israeli and Palestinian media, the matter which is clearly reflects on the individuals’ view on the causes of the conflict, its consequences and solutions. Regarding the third level of the conflict i.e. the conflict between political leaders and parties, a strong statistical relationship has been established between political affiliation to a particular party and the perspective of both, the Palestinian and Israeli peoples, on the most significant issues of the conflict. This is reflected in the homogeneity degree of the priorities of the parties and political leaders in the analysis of documents and media, in the analysis of the content with the order of priorities in the Palestinian and Israeli mindset. The statistical results have particularly shown a strong reciprocal correlation between the angles of this triangle. The relationship boosts wrong inherited notions and beliefs, which necessitates their eradication and adoption of new strategies on the part of political stakeholders. In that case, the media will publish them in a positive way that serves the peace process and bring the Palestinian-Israeli conflict to an end. Finally, on the basis of the results and conclusions of this dissertation a model was developed that illustrated how these interactions frame realities into new realities that let the peace process sink even more day by day.