The continuing Palestinian intifada against Israel’s occupation of the West Bank and Gaza Strip has sparked the most significant reassessment of the role and value of settlements since June 1967. Palestinian attacks in Israel as well as on settlers and settlements are forcing unprecedented changes in Israeli perceptions of the settlement enterprise. They are also altering perspectives on the relationship between settlements and Israeli security as understood by policymakers and the public. It is still too early to conclude how or whether the settlement enterprise will adapt to the challenge posed by the intifada or be undermined by it.