Self-awareness—the capacity to focus attention on oneself, and thus to self-evaluate—has a bad reputation in social-clinical psychology because of its ties to negative affect, depression, suicide, and dysfunction. Using Rollo May's (1967) analysis of “the human dilemma,” we outline self-awareness's beneficial contributions to psychological functioning. Without self-awareness, people could not take the perspectives of others, exercise self-control, produce creative accomplishments, or experience pride and high self-esteem. Research suggests that the positive and negative facets of self-awareness are reconciled when people have reasonable self-standards and when they are optimistic about meeting their standards.