Olive trees are one of the most suitable trees for the Palestine soil and climate. This tree, characterized its ability to withstand the hot and dry climate, develops very well in the sandy and clay soil. Olive trees are in need to special climate warm in summer nearly 25 C for continuing ripening of olive and oil forming, and can withstand high temperature till 53 C in addition to climatic situation and cold in winter, also can withstand the low temperature for about -7C for one day or two will -2 C to -3 C for longer period for the budding process. Olive trees can produce a good crop for hundreds of years. Olive production has been reduced by the Israeli policy of land confiscation and destruction of trees, as over 185,00 trees have been uprooted in the West Bank and many areas that were once cultivated with olives have been confiscated for Israeli use. The paper discusses all these facts and more about olive oil in Palestine.