2021 was an eventful year for Israeli-Palestinian affairs and U.S.-Israel relations. This past year brought new leadership in Washington and Jerusalem, conflict in Gaza, unrest in East Jerusalem, a reset in Israel-PA relations, record levels of settler violence, and a new Israeli state budget for the eclectic Bennett-Lapid coalition. In our final policy briefing of 2021, Policy Advisor Shira Efron and Policy Director Michael Koplow reflect on and unpack this year’s events, analyze where things stand for the two-state solution, and offer predictions for what to expect in 2022.