The recent tragedy in Gaza overshadowed the peace process aiming at a sustainable political solution in Palestine. Lately, efforts have focused on the reconciliation of the ceasefire rather than a lasting peace agreement. Eventually, in her first visit to Israel in March 2009 as the United States Secretary of State, Hillary Clinton said the U.S. Government would pursue a comprehensive peace plan, and a two-state solution would be inescapable. This article discusses one of the options for a political solution; the idea of a bi-national state. Different groups throughout history have brought up the idea particularly in periods of change. By and large, the weaker party of the conflict has been an advocate of the idea expecting a change in power relations. Jews supported the bi-national idea during the Mandate era, while the Palestinian advocates emerged recently. The idea of bi-national state does not appear to be a realistic solution for the Israeli-Palestinian conflict. After all, the dispute is based on an identity conflict and both people are devoted to maintain their national identity through their own independent state.