The study examines the pattern of relations between level of threat, political attitude (willingness for political compromise), and well-being (level of stress and life satisfaction) among Israeli teenagers in reaction to Israel's withdrawal from Lebanon. Participants were 419 teenagers from two residential areas: the Northern area (close to the Israeli-Lebanese border) and the Central area (distant from the border). The results show: (a) significant differences between the two groups on: political attitude (Center scored higher), on level of stress (North scored higher), and on life satisfaction (North scored lower); (b) a significant negative correlation between exposure to threat and political attitude; (c) significant negative correlations between political attitude and measures of stress, and a significant positive correlation with life satisfaction; (d) political attitude mediates between level of threat and well-being. Political and educational implications, and mental health policy are discussed.