An integration of critical and interpretive perspectives frames the analysis of interview discourse from participants in a U.S. peace-building dialogue program during 1997-1998. Israeli, Palestinian, and Palestinian/Israeli identified participants' discourse reveals that they negotiate multiple and contextually contingent cultural identifications, and that the context both enables and constrains their relationships with each other. Discursive themes demonstrate the complexity and struggle in which participants position themselves and exercise levels of agency, and negotiate their cultural and intercultural relationships. The findings of the study substantiate calls by scholars and practitioners to incorporate contextual factors such as history, politics, social hierarchies, and agency into research and training models of intergroup dialogue.