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, emphasizeconversation characteristics in their memories ofinteractions, 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 Q final study, conversatimal 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. 0 into any meeting, observe any conversation, discuss previous conversations with others, and you will probably G find that people seem to differ in their sensitivity to what occurs in interactions. Some people seem very "savvy" about social interaction: they sense what is "really" being said in conversations, who John A. Daly (Ph.D., Purdue University, 1977) is an associate professor in the Department of Speech Communication, University of Texas-Austin. Anita L. Vangelisti (M.A., University of Washington, 1985) is a Ph.D. student in the Department of Speech Communication, University of Texas-Austin. Suzanne M. Daughton (M.A., University of Texas, 1987) is a Ph.D. student in the