School administrators in the country have accused Israel of reducing their funding as a way to pressure Christian schools into joining the public school system.
Christian schools argue that this move would risk the schools values and academic achievements, according to The Independent.
It is thought that the majority of Christians in Israel are of Arab descent and Arab MPs joined with students and school staff in demonstrating.
Christian schools says the amount they get is lower than Jewish schools.
There are around 47 Christian schools in the country, which have been on strike since the start of September.
Speaking to the BBC at the demonstration, Ibrahim Fakhouri, a parent from Nazareth, said he believed Christian schools were being targeted: "As citizens of this country, we are law obeying citizens, and we deserve equal rights."
The Education Ministry said that "Christian schools are funded in an equal manner as other recognized but unofficial schools in the State of Israel," according to the Jerusalem Post.
It is also being reported that meetings are taking place with representatives from each side.