This article examines Palestinian identity transformation in Israel during the years between 1967 and 1987. Fifteen Palestinian novels and autobiographies were published in Israel during this period. My article will focus on a group of five from among them that I call counteraction novels. Counteraction novels show the failure of the Zionist modernist paradigm—according to which modernization and integration of Palestinians in Israel are complementary processes—by reflecting a Palestinian distinction between modernism and Zionism. On the one hand, the novels reflect that Palestinians in Israel are grappling with issues posed to them by modernization. On the other hand, counteraction novels present a uniform rejection of Zionism’s erasure and alienation of Palestinians in Israel. I also argue that counteraction novels do not portray a “positive” Palestinian identity; they do not voice what Palestinian identity is.