This article discusses the effect of the political division between Fatah and Hamas on the level of generalized trust in Palestine. It argues that the level of trust in Palestinian society has been shaped and influenced by the ongoing political division since 2007. As the level of trust has been declining since 2007, this research suggests that distrust in the political system, the deteriorated healthcare and education services, the high level of unemployment, corruption, and the violation of human rights in the Gaza Strip and the West Bank have led to the decline of the level of generalized trust in society at large. This study uses statistical test results to support the main argument. Data available from 2007, 2011, 2014, and 2017 from the Arab Barometer are used to examine how institutional and contextual factors affect the level of generalized trust in the Gaza Strip and the West Bank. The article discusses the results and how creating a hybrid society has contributed to lowering the level of trust generally. It seeks to understand the change in social trust among Palestinians over the years of the ongoing division, and examines how the political division, directly or indirectly, has led to the current low level of trust that has left remarkable changes and deep polarization in Palestinian society.