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This paper describes the development of a new multilingual education policy in Israel, based on an ‘engaged language policy’ approach viewed as consistent with democratic and humanistic values inclusive of others. In this approach, each school creates a language policy fitting its unique characteristics, emerging from the collaboration between various stakeholders. A series of empirical studies was conducted, mapping out Israel’s unique multilingual challenges and addressing pivotal issues to be integrated into the new policy. Reflecting these findings, the policy developed flexible, open, and dynamic principles, suggesting a fitting response in the current multilingual era. The implementation of this policy in schools and education systems generally could also affect wider circles and society as a whole.