According to the world's three most prominent monotheistic religions, Jerusalem is a sacred city. Given this, what are the underlying factors that motivate individuals to split it? Why is it so crucial for Jerusalem to serve as the capital of Israel? What prevents Israel and the Palestinians from deciding between "peace" and "authority" over Jerusalem? Given Jerusalem's volatile history over the past century, what geopolitical repercussions will the city's split have? Does this United States' "Peace to Prosperity Plan," and making Jerusalem the capital of two states, solve the complicated equation of the "two-state solution"? This study relates to all five questions and the other significant variables, such as the problem of refugees and peace in Gaza, with a normative approach to analyze the US Plan for peace between Israel and Palestine. The ideological and emotional state of the people of the West Bank and Gaza is also essential. Thus, this study is crucial to understand why the Plan failed if it did. The study emphasizes the possibilities rather than mere criticism to seek alternates, corrections, and ideological replacements for a comprehensive and sustainable peace between Israel and Palestine.

Keywords: Jerusalem, Israel, Palestine, United States, Peace to Prosperity Plan, two-state solution