© 2020 The Authors. Social Science Quarterly published by Wiley Periodicals LLC on behalf of Southwestern Social Science Association Objective: This article considers the raison d'être of international institutions in the occupied Palestinian territories during the Oslo period (1993–2000) and discusses how these institutions have shaped the notion of a future Palestinian state through their policy recommendations and development projects. Methods: Drawing on neo-Gramscian concepts of hegemony and internationalization of the state this project analyzes the Oslo peace process through primary source data and information in the Oslo Accords as well as the official reports and publications of the major international development and financial organizations involved in the Palestinian territories. Results: Through policy recommendations, development projects, and donor funding and aid coordination, international institutions set in motion the neoliberal conceptualization and configuration of Palestine during the Oslo process. Conclusion: I conclude with a review of the findings, as illustrated throughout the article, and emphasize that Palestine's conceptualization will continue to be rooted in the development of the neoliberal condition as long as a political process that would lead to Palestinian self-determination and an end the conflict is not pursued.