The aim of this study was to characterize the municipal solid waste (MSW) in Nablus city in Palestine, while focusing on the plastic waste fraction. The plastic fraction—an environmentally problematic waste stream—was further characterized into the different polymer types and formats with the aim of suggesting feasible recovery and recycling solutions. Locally generated studies lack data about the recyclable fractions in the MSW and a thorough characterization of the plastic waste stream, although there is global action to minimize and optimally treat this waste fraction. The composition analysis was conducted by collecting 60 samples from five districts with different characteristics (e.g., income, density, level of education, building formats). The fraction of bio- and organic waste is significant in the collected MSW in Nablus, representing about 68% of the total MSW. The recyclables (paper and cardboard, glass, metals and plastics) amount to 27.4% of the generated MSW in the city. The plastic fraction (10.1%) is mainly composed of low-density polyethylene (LDPE) films (39.8%), polyethylene terephthalate (PET) bottles (21.9%), high-density polyethylene (HDPE) rigids (19.0%), and polypropylene (PP) rigids (11.5%), all of which are technologically recyclable. The polymer types and container formats indicated that the collected plastics originate mostly from packaging. The outcomes of this research indicate the need to implement a separate collection system for the organic waste fraction, which could be used to produce compost for the agricultural activities in the region. By having such a system, the dry recyclables (including plastics) can be easily recovered with less degree of contamination for recycling, helping the local recyclers to access cleaner materials. Furthermore, the state of Palestine lacks strict regulations for the end-of-life treatment of the different waste fractions; therefore, having clear guidelines and incentive systems will result in the minimization of the generated waste as well as better achievement of recovery and recycling targets. In addition, expertise, funding, public awareness, facilities, equipment and other provisions are currently lacking or inappropriate. In future, these factors must be addressed to enhance sustainable solid waste management.