This study explores the setting up and development of the first Palestinian-led education system, from 1994 to 2005. Given the context of chronic crisis, and the immensity of the endeavour, the Palestinians have made substantial progress in a relatively short time. However, the Palestinian education story does not end here. The author looks at both the opportunities and challenges for education in the Occupied Palestinian Territory, and draws lessons for those in other conflict-affected areas. Major achievements include the development of core mechanisms for educational planning, administration, budgeting and co-ordination, as well as a new Palestinian curriculum framework, which has been instrumental in bringing Palestinian identify, history and culture into the classroom. There is greater harmonization of the West Bank and Gaza Strip within the education system, and expansion of access and inclusion has been built into the system. The following are appended: (1) Organization Structure for the Palestinian Ministry of Education and Higher Education; (2) Overview of Five-Year Plan; and (3) Palestinian Child Law 2005. (Contains 6 tables and 11 boxes.)