Research on the self tends to focus on the individual, rather than the social context. Instead, I argue that self-perception is an inherently social phenomenon. It cannot be studied in isolation from interpersonal perception because the individual always acts as a perceiver and is always a target of perception. I use a multilevel approach to social perception to examine two longstanding issues in the field. The first is traditionally focused on the individual: Is self-perception inherently biased and are these biases beneficial for adjustment? I review two earlier conceptions of self-enhancement dating back to Festinger and Allport and then reconceptualize self-enhancement bias within a broader model of interpersonal perception. The second issue is traditionally focused on groups: The link between the diversity of a group and group performance. Findings suggest that self-perception processes have important implications for group outcomes, mediating the impact of diversity on group performance.