This study analyzes the behavioral patterns and policies of Arafat, using two tools: psychological analysis and strategic analysis. The psychological analysis attempts to identify Arafat’s behavioral patterns and to deduce from them the main characteristics of his personality—his outstanding features, functional characteristics, and leadership style. In addition, the study investigates his psychological development, and presents an analysis of the connection between these and his present behavioral patterns. The strategic analysis attempts to identify Arafat’s typical operational patterns, from an understanding of his past actions, and the way he relates to the various “players” in the arena. From these two analyses, the study presents operative conclusions regarding the question of how Israel should deal with Arafat.