United States Middle Eastern Policy has so much significance that it is developed in the full brightness of media attention and subjected to be vast discussion. For the last sixty years the U.S.A. has been playing fighting roles in the Middle East. As a champion of liberal ideals it waged war to install democracy and as a supporter of dictators to protect American interest. But in the Middle Eastern policy, the Israel-Palestine conflict is more important. Woodrow Wilson firstly supported Zionism publicly and his role was crucial in awarding of British Mandate for Palestine. He extended support to Zionism in spite of King-Crane Commission’s report of overwhelmingly opposition of Arabs to establish a Jewish home. President Truman supported the U.N. Partition plan and immediately recognized the Israel after its establishment. More over after 9/11 the convergence of Zionism and United States has reached its highest point and “terrorism” became their shared rhetoric. In this paper we will discuss why US foreign policy is so much significant in Middle East and why the Israel has much influence on American policy. How far America succeeded to solve the Palestine issue and if not then why?