The main goal of this study was to review published studies on the impact of extreme negative life events related to political violence such as terror attacks and wars on the well-being and mental health of various groups of Arab and Jewish civilians in Israel. More specifically, this study examined the well-known risk factors for PTSD related to terrorism, military operations and wars in Israel, as well as symptoms of Dissociative disorder, Acute Stress Disorder (ASD), Secondary Traumatization, and Death Anxiety. The study also took into account some of the background characteristics, and internal and external resources available to the individual, which can serve as mediator variables between these negative events and the population’s well-being. All of the literature published in Israel on these topics up until May 2017 was systematically reviewed. The review included over a hundred items and studies on the impact of ongoing terror attacks and risk factors for distress, trauma and PTSD. Findings indicated that causes, risk factors, and outcomes vary widely, from the earlier and traditional studies to the more recent, modern, and sometimes integrated approaches towards these topics.