Satisfying interpersonal relationships are an important and beneficial part of life. However, despite that fact that most people desire close interpersonal relationships, some people are less successful at forming and maintaining these relationships than others. One plausible explanation for such individual differences is that people differ in their levels of interpersonal competence – their ability to consistently enact behaviors that are effective, socially appropriate, and satisfying to others. The present research sought to examine different approaches to understanding and assessing interpersonal competence. A comparison of these approaches led to the creation of an Integrated Interpersonal Competence Model (IICM) that sought to maximize the strengths of each individual approach. This new model was tested in two studies (total N = 348) with the goal of understanding why people receive higher (or lower) interpersonal competence (IC) scores and how competence is related to successful interpersonal functioning. Both Studies 1 and 2 examined how the individual components of the IICM contributed to one’s overall IC score. Both studies found that the ability to accurately process social information was related to one’s likelihood of receiving a high IC score. In addition, how an individual evaluated response options seemed to play the largest role in determining whether or not the person would enact the response. Finally, IC appeared to be composed of a blend of interpersonal warmth and dominance. Study 1 also examined the relationship between IC and daily life outcomes. Results showed that higher competence individuals tended to experience a greater frequency of positive events, higher levels of prosocial feelings and satisfaction, and enacted fewer hostile and submissive behaviors on a daily basis. Study 2 investigated how IC was perceived by others. Individuals who were higher in IC were perceived to have fewer antisocial feelings, and be less selfish by peers and parents, and had higher quality relationships with their parents. Interestingly, processing abilities were unrelated to daily and informant-reported outcomes, but personality-like tendencies toward enacting friendly and hostile behaviors were consequential. Overall, the integrated model produced insights into interpersonal competence and can provide a useful guide for future investigations of interpersonal competence.