This article discusses the influence of studies in Israeli academic campuses on the formation of Palestinian Arab students' identity and social activism. Narrative life-story interviews with 14 Palestinian Arab students studying in Israeli academic campuses revealed that these campuses create the first opportunity for daily encounters between Palestinian Arab and Jewish students. The encounters engender interaction and open debate, stimulating the reformulation of students' identity in various circles of affiliations. The research findings also reveal Palestinian Arab students' feelings of marginality and hybridity, inspiring their social activism to produce a better society. Higher education brings new knowledge and generates elements of a new "academic" identity involving academic thinking and culture; the academic interlude empowers students and enriches their personal tools. The article concludes with implications for educators, indicating a need to create open intercultural spaces as meeting points for group interaction in multiethnic university and college settings to facilitate dialogue and mutual understanding.