Sirens wailed at noon in Ramallah and elsewhere across the West Bank for 66 seconds to symbolize the number of years since the "Nakba," or "catastrophe" in Arabic - the term Palestinians use to describe their defeat and displacement in the war.
Israel overcame the armies of surrounding Arab states as well as local Arabs who attacked after the Jewish state was declared on May 15, 1948.
Hundreds of thousands of Palestinians fled or were forced out during the fighting. Many of them and their descendants still live in the West Bank and Gaza Strip or in neighboring Syria, Lebanon and Jordan.
Their fate is also a key issue in peace talks with Israel, though those talks have produced no results. The latest US brokered peace talks between the sides aimed at establishing a Palestinian state alongside Israel collapsed last month.
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Israel has offered to take in a small number of Palestinian refugees but insists that the rest must be resettled in a Palestinian state that will be created under a peace accord or in the countries where they now live.
For their part, the Palestinians have been split since 2007, when Islamic Hamas militants seized control of Gaza from forces loyal to the secular, Western-backed Abbas. Hamas now rules Gaza while Abbas and the Palestinian Authority have control of parts of the West Bank.