Shu'fat, or more commonly Shuafat (Arabic: شعفاط Šuʿafāṭ), is a Palestinian refugee camp in Jerusalem jurisdiction located next to Shuafat, a Palestinian Arab neighborhood of East Jerusalem. The camp is located outside the separation wall (unlike most other Jerusalem's neighborhoods), but technically the Shuafat refugee camp is the only Palestinian refugee camp located inside Jerusalem or any other Israeli-administered area.
In the wake of the 1948 Arab–Israeli War, the Red Cross accommodated Palestinian refugees in the depopulated and partly destroyed Jewish Quarter of Jerusalem. This grew into the Muaska refugee camp managed by UNRWA, which housed refugees from 48 locations now in Israel. Over time many poor non-refugees also settled in the camp. Conditions became unsafe for habitation due to lack of maintenance and sanitation, but neither UNRWA nor the Jordanian government wanted the negative international response that would result if they demolished the old Jewish houses.
In 1964, a decision was made to move the refugees to a new camp constructed on mostly Jewish land near Shuafat. Most of the refugees refused to move, since it would mean losing their livelihood, the market and the tourists, as well as reducing their access to the holy sites. In the end, many of the refugees were moved to Shuafat by force during 1965 and 1966.
After the 1967 Six-Day War, East Jerusalem, including the town and refugee camp, was occupied and later annexed by Israel, in a move not internationally recognized, and were incorporated into the Jerusalem municipal district. The residents were offered Israeli citizenship, but most refused it as they considered the area to be illegally occupied. Many accepted permanent residency status instead.