This study explores the influence of personal values and collective victimhood on ethical decision-making (EDM) during wartime. While value-EDM associations have been extensively examined in stable contexts, the dynamics of war present unique challenges, including a heightened sense of collective victimhood. Using Schwartz’s value theory, the research analyzes the impact of personal values on war-related ethical decision-making (WEDM), and the moderating role of collective victimhood. Based on a field experimental design with survey vignettes, the study sampled 262 working adults in Israel during the Israel-Hamas conflict of 2023-2024. Findings reveal that Self-transcendence and openness to change values enhanced WEDM, while self-enhancement and conservation values reduced it. Collective victimhood moderated value-WEDM associations, by prioritizing ingroup loyalty over universal ethical principles. However, it had no effect on EDM in stable contexts. These results show that the mechanism behind EDM shifts in wartime, highlighting how crises can alter value-driven ethical decisions. The findings emphasize the need for strategies that mitigate collective victimhood and promote values fostering inclusivity and shared responsibility. This study contributes to understanding ethical challenges in conflict zones and offers insights for organizations navigating ethical dilemmas in extreme contexts.