This article presents the results of a study conducted among Palestinian teachers in Israel to address their contextual understanding and perceptions of forgiveness. It sheds light on K-12 teachers' responses to daily cultural and social conflict situations in a Middle Eastern context. This research aims to contribute to our understanding of forgiveness on conceptual as well as perceptual levels, hoping to enhance the knowledge-base needed to educate for forgiveness and reconciliation in Arab society. The present study is the first of several examining forgiveness among teachers in four Middle Eastern countries (Palestine, Lebanon, Jordan, and Egypt). Sixty-two classroom teachers in Arabic-speaking schools among Palestinians in Israel participated in the study. The teachers filled out a survey that included 10 hypothetical scenarios requiring forgiveness. The results from the survey and qualitative written responses suggest a high level of forgiveness when the situation involves parents, children, and social commitments, such as in giving wedding gifts. When the wrongdoing was intentional, there was less willingness to forgive in all cases, except in the case of parents of a child misbehaving. In addition to the present study's contribution to the research on forgiveness and reconciliation, it also adds to the knowledge-base on constructing curricula for peace education in the Middle Eastern context. (Contains 9 notes and 7 tables.)