The purpose of this study was to test collective trauma, quality of life and resilience in narratives of Palestinian refugee children. The sample consisted of (30) children aged (14–16) years selected exclusively from five (5) Palestinian refugee camps (Balata, Askar, Ein Beit al-ma’, Nur Shams, and Jenin) established after the 1948 Nakba in the West Bank region of Palestine. Results demonstrated that children in today’s Palestinian camps suffer from collective trauma, they considered the 1948 Nakba as a ‘losing’ experience as it has affected all generations of Palestinian refugees. Results also showed that children in Palestinian camps suffer from poor quality of life; they live in very narrow homes and places, with lack of stadiums and recreational facilities. Participants of this research, however, appeared to demonstrate a high level of resiliency, positive self-efficacy, and responsibility to deal with difficult and stressful events; despite poor quality of life and collective traumatic experiences they have had.