Informed by a perspective centred on psychological health and well-being, the present research investigated whether teachers' overall well-being was influenced by their affect balance, as well as the extent to which both affect and well-being are influenced by social capital, in conflict-ridden areas such as the occupied Palestinian Territories (Gaza Strip and West Bank). The study involved three cohorts of Palestinian teachers working in Israel, Gaza and the West Bank, respectively (N = 153). Dynamics of social exclusion, religious difference, educational disparity, poor educational standards and a lack of opportunity are factors affecting Palestinian teachers in both Israel and the occupied Palestinian territories. The results supported the hypothesis that emotional balance directly influences teachers' well-being. Teachers with higher levels of positive affect reported greater personal well-being than those with higher levels of negative affect. Social capital also positively influenced teachers' personal well-being, both directly, and indirectly by fostering positive emotions. These results suggest that availability of community resources plays a key role in promoting teachers' well-being.