This article explores how in the contexts of exile and statelessness and in the absence of Palestinian institutions, such as schools, Palestinian youth in south Lebanon construct their identities through nationalist narratives of shared history, kinship, culture and religion. Although these narratives help to construct shared notions of "Palestinianess" for the youth, they also help to produce contestations and internal "others". This has important implications for the lives of Palestinian youth, as group membership gives them a sense of belonging and regulates their access to resources, information, opportunities and power. Moreover, the production of internal "others" also has serious implications for social cohesion, tolerance for internal and external diversity and gender relations in Palestinian society. (Contains 2 notes.)