This study evaluated the effects of a positive-psychology intervention on adolescents exposed for a lengthy period of time to war-related stressful events as a result of the violent Israeli-Palestinian conflict. Participants were 2,228 adolescents from four schools in southern Israel. In a quasi-experimental repeated measures design, pre- to post-test modifications in the intervention (n = 1,120) and control (n = 1,108) conditions were assessed in adolescents exposed to low or high political-strife related life events. Analyses revealed significant differences in changes over time between the intervention and control groups in psychological symptoms, subjective well-being, perceptions of the Palestinians' hostility, compassion, trust, willingness to negotiate with the Palestinians, and hopes for peace. Mental health and subjective well-being significantly improved in the intervention group over time and declined in the control group. The intervention group participants showed a significant increase in motivation for conflict resolution, compassion toward the Palestinians and hopes for peace, whereas the control group participants showed a significant decrease in beliefs about conflict resolution and hopes for peace. These results underscore the contribution of positive-psychology interventions to adolescents in war-affected regions.