The Israeli army has included tensions between Jews and Palestinians living with Israel's 1948 territories as a strategic factor in its scenario training.
Last year clashes broke out between Jews and Palestinians inside Israel's 1948 borders, who hold Israeli citizenship.
The clashes were marked by mob attacks against Palestinians, vandalism, and general chaos.
Jewish Israeli mobs stormed into Palestinian areas of cities such as Lod and Haifa and attacked local residents. In May, footage of a far-right Israeli mob lynching a Palestinian man near Tel Aviv was aired live on television.
“The security challenges within Israel and the internal tensions now have a negative strategic impact,” a senior security official told Haaretz.
“The recent events, which reached a climax during Operation Guardian of the Walls have very severe effects on security, much more than Iran and Hezbollah,” he added, referring to Israel's deadly 2021 assault on the Gaza Strip which happened at the same time.
Over 250 Palestinians were killed and thousands more wounded as a result of Israel's attack on the besieged coastal enclave.
Some of the scenarios being planned involve serious clashes in Palestinian and Jewish cities which need large police deployments.
Human rights organisations say Palestinians in Israel are disproportionately targeted by Israeli police.
Last year, Human Rights Watch accused Israeli police of using "excessive force" against Palestinian protesters in the city of Lod during May unrest, while treating Jewish rioters more favourably.
Palestinian citizens of Israel make up 20 percent of the Israeli population and face systematic discrimination. Amnesty International has described Israel's treatment of Palestinians both within its 1948 boundaries and in the West Bank and Gaza as "apartheid".
Large segments of the Israeli public see Palestinian citizens as a demographic threat to the Jewish majority, with discrimination entrenched across housing, public services, education and employment.
Palestinian citizens of Israel are often at odds with the Israeli police – an institution they believe is taking a passive role in stopping a gun violence epidemic within their community, which accounts over 60 percent of all murder victims in Israel.