This study aims to identify the options and challenges of financing development in Palestine, with a particular focus on the significant role played by Microfinance Institutions (MFIs). The study primarily relies on a qualitative methodology, employing in-depth interviews with a sample of MFIs in Palestine, along with various other relevant stakeholders. The research findings presented in this section elucidate the multifaceted rationales and significance of microfinance in Palestine, encompassing economic, social, and political dimensions intricately intertwined with the context of Israeli occupation. Notably, the discussion explores the foundational justifications for MFIs, emphasizing their role in poverty alleviation, serving marginalized groups, and fostering comprehensive development while navigating the challenges posed by the occupation. Furthermore, the study delves into the evolving priorities of MFIs and their alignment with national development objectives, alongside the impediments faced by these institutions in advancing development initiatives within the Palestinian territories. Through comprehensive analysis, this research offers valuable insights into the dynamics shaping the microfinance landscape in Palestine, highlighting the imperative of addressing challenges and harnessing opportunities to realize sustainable economic growth and social development in the region.