This chapter discusses the social psychology of humor, starting with a walk through how the presence of other people can make things seem funnier. It shows how humor can have a positive or a negative tone and it can focus on ourselves or on those around us. Self-enhancing humor makes stress tolerable. It can keep folks from viewing minor annoyances as unbearable disasters. The chapter sketches how humor can function to maintain the status quo. People who report using self-enhancing humor show less anxiety, neuroticism, and depression; better psychological well-being and self-esteem, and more extraversion, optimism, and openness to experience. When it comes to hierarchies, getting a feel for who’s cracking jokes and laughing can communicate who’s top dog. The chapter finally focuses on gender differences, and then sees how humor contributes to developing friendships, finding a date, and maintaining an intimate relationship.