The Arab Israel conflict remains one of the most considerable and complex dilemmas facing the international community. The enduring quarrel between Israelis and Arabs has directly and indirectly propagated many regional wars in the past five decades, jeopardized Western entrance to important oil resources in the Middle East, provided a good reason for increased militarization throughout the region, and caused a high amount of civilian deaths as a consequence of terrorism. On the other hand, Israeli-Palestinian (Arab) peace prospects are not very hopeful because the ongoing clashes frequently sabotage every peace settlement between the two nations which eventually affect regional peace. The issue holds a significant place in US foreign policy since its birth and White House has spawned serious efforts to create peace in the region. Apart from bringing peace to the region, Washington has its own reasons for involvement in Middle East such as access to the oil resources, economic interests, terrorism but the core problem plays a major role in US participation in the affairs of the region. Every US president from Truman to Obama has advocated many peace plans which even reached towards a settlement but at the end, proved to be futile. To determine the background for understanding the current situation, it is necessary to evaluate the roots of the Israeli-Palestinian conflict and probable solutions to end the controversy.