This article explores the Israeli project to integrate Buddhist principles and practices within psychoanalysis. The article’s focus is to view the Israeli project through a contextualist lens. Beginning with a concise summary of the project that highlights the unique and creative features of the Israelis’ understanding of non-dual states, the Israeli vision is then contextualized within their particular understanding of Kohut’s legacy. Following some cautionary statements about clinical applications with severely traumatized individuals, the article explores the tragic and trauma-informed historical/political context that gave rise to the particular vision of psychoanalysis the Israeli project hopes to bring forth. The project comes to be understood as a beginning micro-movement, a leading developmental edge within the deep despair and traumatic entrenchment of the collective Israeli psyche.