Traditionally, the Israeli Labor Party was the leading party of the peace camp in Israel. The paradigm was to achieve the Two-State Solution by means of direct bilateral negotiations that lead to a final status agreement. In a remarkable shift, the party published in February 2016 a new plan called the “Separation Plan”. While sticking to the goal of the Two-State Solution, the plan represents a change of strategy by taking a gradual approach and focusing on separating from the Palestinians first. The plan leaves many open questions as to its details and feasibility and has to be understood against the background of the dropping popularity of the Labor Party and its strategic positioning for potential coalitions with other parties.