This study examines the relationship between critical thinking and grades at the tertiary level, focusing on their social, political, and ethical implications. Employing a mixed-methods approach, this study combines survey data collection with in-depth interviews to generate comprehensive insights into the complex relationship between critical thinking and grades. The survey targets 173 faculty members, while the interviews focus on seven selected academic staff members from Palestinian universities, enabling a comprehensive understanding of the research objectives. Results showed that grades often hinder critical thinking skills and creativity, leading to rote memorization and limited creativity. The study also highlights the political implications of grades, as standardized testing influences education policies and curriculum decisions. Faculty members expressed criticism of the prioritization of grades, citing conventional evaluation methods, temporal limitations, and resource constraints. As critical thinking is crucial for comprehensive student development, contributing to problem-solving, decision-making, creativity, innovation, effective communication, and active citizenship, the study proposes diverse approaches to strike a balance between valuing grades and nurturing critical thinking abilities. By fostering critical thinking abilities, Palestinian students can enhance their preparedness for academic pursuits, personal growth, and societal contributions.