FIDA emerged as a split from the Democratic Front for the Liberation of Palestine (DFLP)[1] due to disputes in the early 1990s about the policies towards Jordan, the Oslo peace process and the First Intifada.

FIDA took a more moderate stance than the main DFLP (led by Nayef Hawatmeh and based in Damascus, Syria) towards the Israeli-Palestinian conflict, and has tried to establish itself as a left-wing democratic alternative in Palestinian politics.

Women's rights activist Zahira Kamal had been chosen in an internal election to replace him as minister in the government of the Palestinian National Authority (PNA), but Abd Rabbo refused to step down, and instead left the party.

FIDA took part in the 1996 elections to the Palestinian Legislative Council (PLC), and with Fatah backing managed to gain one seat, held by Azmi ash-Shu'aybi.

In the January 2006 PLC elections, FIDA was part of the al-Badeel (Alternative) joint list, with the DFLP and the Palestinian People's Party (PPP).