This paper discusses the means by which youth of conflicting nationalities may be taught to live together in Israel with mutual understanding and respect. The first part of the paper focuses on relations between Jewish and Arab youth, and suggests guidelines for designing a cross-cultural learning project to improve the relations between these groups. It is suggested that an intellectual approach (i.e., learning about the other group and its culture) is the optimal model for educational programs aiming to promote better Arab-Jewish understanding. The second part of the paper addresses cultural and social differences between Western and Middle Eastern Jews. Classroom techniques are called for that will facilitate social desegregation by reducing the substantial academic competition and status differences currently prevalent in Israeli schools. (GC)