The "Children Teach Children" (CTC) program aimed to educate Jewish and Arab children in Israel for tolerance and coexistence is first described against the general background of coexistence programs in Israel and in other countries. Results of a study that examined the influence of the program implementation in Grade 7 in a pair of neighboring schools (a Jewish school and an Arab school) indicate differences between perceptions of students and of program coordinator-teachers regarding the achievements of the program's first year. Students' responses pointed at no change in the area of awareness to identity, a positive change in interpersonal relationships yet a worsening of stereotypes, although both Jewish and Arab students expressed the will to continue with the program and with the same class. Teachers revealed a higher degree of satisfaction and emphasized the gains of the program, mainly regarding the improvement of communication skills, disclosure of feelings, acceptance of different opinions, and the creation of an empowering group climate as a platform for the continuation of the program. (Contains 3 tables.)