This study examines Israeli Palestinian Arab and Jewish students from five education colleges in Israel. Students worked collaboratively through a yearly online intercollegiate program. The research includes qualitative analysis of openended questions and ongoing reflective journals as well as quantitative analysis of pre and post questionnaires. The qualitative results revealed that students' initial apprehension about working with people from the other culture diminished at the end of the course. This change was backed up by the results of the t-test (-4.38), which indicated that the perception of other participants in the group improved significantly among both Jewish and Israeli Palestinian Arab participants.