The study adopts the historical approach with a view to tracking the history, causes and important characteristics of the concept of good governance and its interrelationship with sustainable development in the Palestinian context. The study reveals that Palestinian society is considered an exception and in a great need for good governance as a result of Israel's occupation, administrative and financial corruption inherited among staff, and the Palestinians' dependence on foreign aid. It also reveals significant Palestinian efforts in the area of good governance, manifested in the signing of the convention against corruption, the establishment of the anti‐corruption commission and the office of financial and administrative oversight. The results also showed that the adoption of good governance at the Palestinian level will contribute to improving the quality of life and improved relations with donor countries, improved investment environment and access to international aid and empowering marginalized groups to access their rights, and preparing Palestinians for a more realistic development role in the future community and institutional awareness and willingness to change, based on the information available at the appropriate time and place and complementary participatory relationships between different sectors, institutions and society, and everyone's participation in decision‐making law‐making, policymaking, resource protection, strategic decision‐making and social peace. Accordingly, the study recommends that good governance should be applied as a Palestinian priority and that researchers should provide good governance indicators appropriate to Palestinian realities.