In Israel, the awareness on the youth dropout from school problem has increased in the last decade. There is no doubt that dealing with this phenomenon poses a challenge to the Israeli society and to the authorities responsible for educational services. It turns out that certain groups among the Israeli population are at a higher risk of dropping out from school than others. As a result of it, many teenagers from these groups do not complete their high school studies and are unable to integrate in a qualitative and significant manner in the army and the labour market. Moreover, dropping out of the education system may have a significant impact on the mental and economic well-being of young generations of citizens. Therefore, preventing the problem of dropout and helping the youths to get back into the loop is a tremendous challenge to the Israeli education system. Even if in the last decade Israel registered lower rates of educational dropout then before, middle, and high-school students are still struggling with the issue. Therefore, the article underlines theoretical aspects regarding educational dropout as general framework and presents the specifics of the phenomenon in the Israelian educational system. The last part of the paper follows, based on secondary data analysis extracted from national official data, the differences between the two main state educational systems in Israel (Hebrew and Arabic) in terms of tendencies on educational dropout in the last ten school years. The data reveals that, even if there is progress in preventing educational dropout in both systems, the Arabic system registers significantly higher rates that the Hebrew educational system.