Palestine Liberation Organization n : a political movement uniting Palestinian Arabs in an effort to create an independent state of Palestine; when formed in 1964 it was a terrorist organization dominated by Yasser Arafat's al-Fatah; in 1968 Arafat became chairman; received recognition by the United Nations and by Arab states in 1974 as a government in exile; has played a largely political role since the creation of the Palestine National Authority [syn: {PLO}]