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People differ in their sensitivity to what happens during conversations: Some individuals enjoy listening to social exchanges, pick up hidden meanings in conversations, can generate optimal ways of saying things in interactions, and are generally “savvy” about the different sorts of power and affinity relationships exhibited in conversations. In this article we explore the nature and correlates of conversational sensitivity. People high in sensitivity make more high-level inferences when listening to social exchanges, unitize conversation in smaller chunks, emphasize conversation characteristics in their memories of interactions, and make more self-referents about conversations than less sensitive individuals. In addition, conversational sensitivity is positively related to self-monitoring, private self-consciousness, perceptiveness, self-esteem, assertiveness, empathy, and social skills. It is inversely related to communication apprehension, receiver apprehension, and social anxiety. In a final study, conversational sensitivity is construed not as an individual difference but as situational response: In some settings under some conditions, people become more sensitive to what happens in conversation.