ABSTRACT The study examined predictors of psychological distress among Arab-Palestinians in Israel during COVID-19 from an ecological perspective. Participants (n = 665) completed questionnaires assessing their sense of danger, resource loss, social support, barriers to accessing formal support, social exclusion and ethnic discrimination, and depression, anxiety, and somatization. Our structural equation model accounted for 68% of the psychological distress variance. Individual, interpersonal, community, and socio-political variables were significantly interrelated, and associated with psychological distress. The socio-political context of Arab-Palestinians highlighted specific challenges and resilience factors. Results underscore the necessity of a holistic approach and context-sensitive policies to address psychological distress among minoritized populations.