Although the question of Palestine continues to be of deep concern to the Muslim world, a systematic and viable Islamic response has been lacking. The case is but one that highlights the shortcomings of the classical methodology of interpretation in terms of effectively responding to contemporary conditions and realities. Using the Israel-Palestine conflict as a case study, this article examines the interpretation and application of jihad in Islam. It proposes a contemporary methodology for Quranic interpretation and application based on the integration of the maqasid-oriented approach, contextualization, and the use of social science research. The article demonstrates that, based on an inductive analysis of the Quranic verses concerning war and peace, non-violence is a legitimate form of jihad that is consistent with the higher objectives outlined in the Quran. Moreover, based on empirical research into the global political and legal context, Palestinian non-violence, rather than the use of armed force, is more conducive to achieving their political aspirations.