Abstract:The research paper aimed to identify the impact of micro-grants in the poverty alleviation of Palestinian families in Gaza Strip who suffer from extreme poverty through the transfer of assets to start economic activities to improve their livelihood strategies and provide them with skills and experience to contact Microfinance Institutions taking Deprived Families Economic Empowerment Program (DEEP) as a case study. Results showed positive impact of the program in reducing poverty and unemployment rate, projects are the main source of income for many benefited families, they achieved a rise in their income after getting the grant and improved their expenditure on basic necessities. Poor families also feel that they are more independent after the project, and they can support themselves from their current income. Although these projects have not yet sufficiently developed to be able to dispense relief aid, the political and economic circumstances of the Gaza Strip had a negative effect on the performance of the projects.