The term social interaction conjures up images that involve at least two people. These two people are likely to have beliefs about one another, beliefs about how the other person views them, and beliefs about the interaction. Moreover, these beliefs are likely to influence both individuals' experiences during the interaction. Although interconnectedness of this type has been pursued in examinations of interpersonal interactions (e.g., Baldwin, 1992; Darley & Fazio, 1980), research on interracial interactions has tended to adopt a more individualistic approach. Similar to interpersonal interactions, individuals' experiences in interracial interactions are often shaped by the beliefs individuals have about one another and their beliefs about how they will be perceived by their interaction partners. In this chapter we examine interracial interactions from a perspective that highlights the interconnectedness that is often at the core of interpersonal interactions between members of different racial groups. This perspective highlights that there are two people involved in dyadic interracial interactions and these two people influence each other's outcomes and experiences.