We review the scientific evidence concerning the relation between power and social information processing. Does having or obtaining power affect how we perceive and judge our social interaction partners and how accurately we do this? High power individuals perceive others as more agentic and tend to project characteristics of themselves onto others. People in power tend to stereotype others more and see them as less human and generally in a more negative way. Powerholders are not more or less accurate in assessing others; rather, the way they understand their power (as responsibility or opportunity) seems to make the difference: Power as responsibility results in better interpersonal accuracy. Our analysis shows that it is not so much being high or low in power that explains how we perceive others, but rather how we understand our power, whether our high power position is stable, and what our current interaction goals are.