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ABSTRACT The signing of Oslo Accords between Israel and PLO was a historic event. There were several factors and events which played vital role but the intifada that started in December 1987 was the milestone event which led to the Oslo Accords. Hamas which was founded during intifada in a very short time became the face and voice of Palestinian liberation movement but it was the Oslo Accords which gave impetus to the movement. Throughout the entire Oslo Peace Period Hamas adopted a very calculative strategy. On the one hand it continued to criticize PLO and its leadership for selling out Palestinian cause in exchange of millions of dollars and on the other hand remain committed to Jihad including revenge killings against Israel. Thus, Hamas was able to preserve its identity and legitimacy as well as its revenge killings were widely accepted because it was presumed as the best means to redress Israeli assassinations. All these factors along with other gradually made Hamas what it is today.