This study aims to explore the nature of Internet access and use within Arab-Palestinian society in Israel. The research focuses on two points: (i) examining the pace of Internet growth during the last decade and studying the nature of the digital gaps within the studied society in a specific time, (ii) studying the extend of the effect of cultural factors in comparison to demographic factors on Internet diffusion and adoption. Measuring the digital gaps uses a new tool to measure different facets of Internet diffusion and adoption: nature of Internet access (duration of access, use locations) and nature of use (frequency, variety of use, type of use and language/s used when surfing). Arab-Palestinian society in Israel is a minority that has been distanced from the Israeli mainstream because of ongoing Israeli-Palestinian tensions. Wide gaps exist between Arabs and Jews in Israel in different socio-economic aspects. These gaps exist also in the diffusion of the Internet. This study examines the effect of various demographic (such as age and gender) and cultural (such as residency and religion) factors on Internet use and the position of cultural factors among all these factors. This study used data from the CBS (the Israeli Central Bureau of Statistics) to track the development of Internet diffusion in the Israeli society, while for studying the digital gaps within the Arab society the study used data provided to the researcher by the Rikaz Center, which carried out the most exhaustive and representative interview survey of Arab- Palestinians in Israel in 2007 (Rikaz data, 2008). This study can be considered an important representation of the state of Internet diffusion and adoption at a specific time and can serve as a reference for researchers and policymakers regarding the development of Internet diffusion and adoption within Arab-Palestinian society in Israel. In addition, studying the effect of various demographic and cultural factors can contribute to the understanding the digital divide and the information society in general. Moreover, the studied population is known for its complex and unique socio-political situation, which makes it of special interest with respect to indigenous minorities.