This paper critically examines the pervasive structural and institutional racism faced by Palestinian Americans within the landscape of U.S. higher education. Utilizing Critical Race Theory (CRT) as the guiding analytical framework, the research aims to unravel the nuanced manifestations of discrimination and illuminate the intricate interplay of historical, geopolitical, and policy-driven factors that shape the contours of Palestinian American lives in academia. The central thesis of this study revolves around the assertion that the unique challenges faced by Palestinian Americans in higher education result from a complex interplay of structural racism, institutional discrimination, and systemic biases perpetuated by U.S.-Israel relations. The research contends that these facets collectively contribute to an anti-Palestinian ethos, impacting educational experiences, academic freedom, and the broader campus climate. Methodologically, the paper addresses the intricacies of structural and institutional racism. The analysis begins by delineating the distinctions between structural and institutional racism, emphasizing their interconnectedness and impact on the lives of Palestinians. Historical overviews, policies, geopolitical influences, and U.S. support for Israel are systematically examined to unveil the political economy generating anti-Palestinian bias. This approach provides a foundation for understanding the system-wide challenges faced by Palestinian American higher education students. The exploration of U.S.-Israel policies further underscores the depth of structural racism, unveiling the historical and ongoing relations between the two nations. By delving into the financial, military, and political support extended by the U.S. to Israel, the research exposes the intricate web of geopolitical factors influencing discriminatory practices that marginalize Palestinian voices. Emphasis is placed on the role of pro-Israel lobbying groups, their significant financial contributions to politicians, and the resultant impact on U.S. policies, particularly in the context of higher education. In addressing systemic challenges within academia, the research employs CRT to analyze the unique experiences of Palestinian American students, encompassing academic discrimination, censorship, and violence. The de facto support for Israel on college campuses is scrutinized, with a focus on how power dynamics and external pressures shape university policies, contributing to an environment that marginalizes Palestinian narratives and limits academic freedom. This paper concludes by synthesizing the findings, emphasizing the racialization, structural and institutional racism, and systemic discrimination that uniquely shape Palestinian American educational experiences. The application of CRT emerges as a crucial tool for dissecting these complexities, advocating for transformational changes in the American higher education system to promote inclusivity, academic freedom, and social justice.