AbstractDepression often is characterized by a subjective sense of social inadequacy. Behavioral theories explain this as an accurate perception of a social skills deficit. Cognitive theories explain the experience as the result of a negatively biased self‐appraisal, although social skills may be adequate. In order to test these two alternative explanations, 10 depressed and 16 nondepressed female undergraduate students participated in a social interaction task. Performance ratings made by self and others were compared. The depressed subjects did not exhibit either a social skills deficit or a negative bias in their self‐evaluation of social skill. However, there were other indications of a negative bias among the depressed subjects. The results do not provide differential support for either cognitive or behavioral theories of depression, but have implications for b