This chapter focuses on recent research in cross-cultural pragmatics (CCP) as distinct from interlanguage pragmatics (IP). The essential difference between the two lies in the perspective from which each views cross-cultural communication. CCP takes the point of view that individuals from different societies or communities interact according to their own pragmatic norms, often resulting in a clash of expectations and, ultimately, misperceptions about the other group. The misperceptions are typically two-way; that is, each group misperceives the other. In an age in which cross-cultural interaction is the norm not only across societies but also within them, different rules of speaking have the potential to cause stereotypes, prejudice, and discrimination against entire groups of people. Research in the area of CCP can greatly aid in ameliorating these consequences. Recent studies that view CCP from this two-way perspective are the focus of this chapter. The overview of this body of research demonstrates the potential contribution of the field of applied linguistics to mutual understanding through the study of discourse issues in cross-cultural pragmatics.