Delegitimization of the adversary, among psychological factors, is one of the major detrimental forces to peaceful resolution of any conflict. In the present context of violence between Palestinians and Israeli Jews, it is probably the major obstacle to the realization of the readiness in both societies to make major concessions in the final settlement of the conflict. First, thus, the paper discusses the nature of delegitimization and elaborates its societal functions. Then it describes the mutual delegitimization between the Israeli Jews and the Palestinians, focusing on the context of violent confrontations that broke out following failure of the Camp David summit meeting in the fall of 2000. It presents several consequences based on survey data carried out in both Israeli Jewish and Palestinian societies. Finally, the paper provides few concluding comments.