In the post-Arafat era, dramatic changes took place in the Palestinian polity and system of governance. Fayyadism became the magical paradigm. It acquired unprecedented levels of international aid as an investment in building a Palestinian state. This paper aims to explore aspects of the Fayyadism paradigm and its interaction with the aid-dependency status and the Palestinian national goals. This paper argues that Fayyadism is not only a strategy but also an outcome; it is a ‘home-grown’ phenomenon even though it is externally sponsored. It achieved ‘successes’ at the Palestinian Authority’s institutional level; however, these successes failed to be reflected on the daily lives of Palestinians. Finally, by eliminating the hybridity in the security provision, it altered the national liberation goals; largely lessen informal mechanisms for resistance and protection as tools for struggle against the occupation; and thus it did not result in protecting the security rights and needs for the Palestinians in the West Bank.