The Arab citizens of Israel form the country's largest ethnic minority. Their community mainly consists of former Mandatory Palestine citizens (and their descendants) who continued to inhabit the territory that was acknowledged as Israeli by the 1949 Armistice Agreements. Notions of identity among Israel's Arab citizens are complex, encompassing civic, religious, and ethnic components. Some sources report that the majority of Arabs in Israel prefer to be identified as Palestinian citizens of Israel.
In the wake of the 1948 Palestine war, the Israeli government conferred Israeli citizenship upon all Palestinians who had remained or were not expelled. However, they were subject to discrimination by being placed under martial law until 1966, while other Israeli citizens were not. In the early 1980s, Israel granted citizenship eligibility to the Palestinians in East Jerusalem and the Syrian citizens of the Golan Heights by annexing both areas, though they remain internationally recognized as part of the Israeli-occupied territories, which came into being after the Six-Day War of 1967. Acquisition of Israeli citizenship in East Jerusalem has been scarce, as only 5% of Palestinians in East Jerusalem were Israeli citizens in 2022, largely due to Palestinian society's disapproval of naturalization as complicity with the occupation. Israel has made the process more difficult, approving only 38% of new Palestinian applications from 2002 to 2022.