The authors describe a theoretical framework for understanding when people interacting with a member of a stereotyped group activate that group's stereotype and apply it to that person. It is proposed that both stereotype activation and stereotype application during interaction depend on the strength of comprehension and self-enhancement goals that can be satisfied by stereotyping one's interaction partner and on the strength of one's motivation to avoid prejudice. The authors explain how these goals can promote and inhibit stereotype activation and application, and describe diverse chronic and situational factors that can influence the intensity of these goals during interaction and, thereby, influence stereotype activation and application. This approach permits integration of a broad range of findings on stereotype activation and application.