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L2 learners often develop grammatical competence in the absence of concomitant pragmatic competence (Bardovi-Harlig & Hartford, 1990, 1993). In an attempt to better understand how this developmental stage arises, this study explores the extent to which instructed L2 learners of English are aware of differences in learners' and target-language production in grammar, which addresses the accuracy of utterances, and pragmatics, which addresses the appropriateness of utterances given specific situations, speakers, and content. We used a videotape with 20 scenarios to test 543 learners and their teachers (N = 53) in two countries (Hungary and the U.S.) as well as a secondary sample of 112 EFL speakers in Italy. The results show that whereas EFL learners and their teachers consistently identified and ranked grammatical errors as more serious than pragmatic errors, ESL learners and their teachers showed the opposite pattern, ranking pragmatic errors as more serious than grammatical errors. We discuss the possible causes of this pattern and its implications for teaching.