Jerusalem holds unparalleled political, historical, and religious significance. The issue of Jerusalem’s status constitutes one of the most important legal issues in the conflict between Palestinians and Israelis. Palestinians argue that negotiations should conclude with the establishment of a Palestinian State with East Jerusalem as its capital, while Israel asserts that Jerusalem is its indivisible and eternal capital. These opposing approaches place the Jerusalem issue at the heart of the Palestinian-Israeli conflict. Therefore, a lasting solution to the Palestinian-Israeli conflict seems unlikely without resolving the Jerusalem issue. This study examines the historical background and current dynamics of the problem, considering the impact of power balances, regional developments, and the policies of international actors on the legal status of Jerusalem in the changing global order. Within this framework, the study aims to demonstrate that the Jerusalem issue is not merely a bilateral sovereignty dispute, but also a multi-layered problem that tests the normative structure of the global order and the applicability of law.