<p>Prosocial decision-making reflects how individuals weigh outcomes for themselves versus others and is shaped by cognitive and social-identity factors, and intergroup conflict. We investigated how intergroup dynamics, language use, and conflict context influence in-group favoritism and out-group discrimination in such decisions, among native Arabic and Hebrew speaking Israeli citizens, representing national minority and majority in Israel, before and during Israel-Hamas war. Participants (<i>N</i> = 338) completed a Social Value Orientation (SVO) task presented in different languages (L1, L2), that concerned in-group and out-group recipients. Across the full sample, participants were more prosocial toward in-group than out-group members, and intergroup bias intensified during the war. Notably, language conditions did not produce significant effects on intergroup bias. Among Arabic speakers, but not Hebrew speakers, national identity was correlated with intergroup bias only during the war. These findings highlight the way intergroup relations, such as minority-majority and active conflict, shape social decisions, and the dynamic and multifaceted nature of intergroup bias.</p>