This article deals with paradoxical relationships between Israeli universities and colleges and their effect on the system of higher education. The article analyzes the history of the higher-education discourse, ranging from patronizing and domineering relations to collaboration based on the recognition that Israel's entire system of higher education is headed in the same direction. Dialogue between the different types of academic schools in Israel is examined in light of the historical-organizational evolution of both universities and colleges. Paradoxical relationships are examined in light of the goals of the various schools, distinctive features of their student populations, their curricula, and their organizational structure. The article illuminates one of the most dynamic and paradoxical dialogues in Israel in the past decade and suggests a potential scenario encompassing the impact of this dialogue on Israel's entire system of higher education. The authors believe that the case of Israel can contribute to at least two important discussions in the field of international and comparative education: (1) the influence of local and global forces on education policy; and (2) policy implementation and the connection between policy and practice. Discussion of the case of Israel and the paradigmatic transformation of higher education may shed light on implications for the field of higher education worldwide.