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Interpersonal sensemaking is the metacognitive process of understanding, predicting and responding to the actions and inferred beliefs of others. Current psychological models of this process differ on whether they emphasize theorizing—sensemaking as a function of a person’s rule-based inferences—or simulation—sensemaking as a function of a person’s ability to ‘wear the other’s shoes.’ Using examples from studies of law enforcement interactions, this presentation will argue that effective interpersonal sensemaking combines both processes. Evidence from field studies show that experts who engage in adaptive, flexible theorizing educe cooperation and concessions from suspects. Evidence from experiments of cross-cultural interactions demonstrate the importance of simulation, but show how strategic behavior can enable other cultures to simulate effectively and thus educe greater cooperation. Recent research has utilized novel methodologies for examining the processes of interpersonal sensemaking and the resulting common ground that sensemaking facilitates. This presentation will review these methodologies and the emerging evidence that interpersonal sensemaking is principally a bottom-up process in which behavioral alignment causes rather than results from high-level cognitive alignment.