The effects of interethnic contact between West-Bank Arabs and Israeli Jews on attitudes of Arabs towards Israel and Israelis were examined in two studies conducted in 13 industrial plants in Israel employing workers from both national groups. On the whole, attitudes of Arabs were found to remain unchanged. However, positive attitude change was found with regard to two types of Arab workers: (a) those who perceived their status at work as high, and (b) those who perceived the treatment they received from the Jews as positive. The results are discussed in terms of the conditions enhancing positive attitude change following interethnic contact. In addition, the prospects of the prevalent type of contact on the relations between the two groups are evaluated.