Scholars have often characterized wisdom as a trait – a stable and invariable individual disposition. However, recent advances in behavioral sciences suggest that many features of wisdom can be viewed as situation-specific states – concrete instances of wise and not so wise behavior. We critically examine the evidence concerning the trait vs. state aspects of wisdom. First, we review the common individual qualities attributed to wisdom. The extent to which these qualities are seen as stable traits vs. variable states varies among both laypeople and scientists, and new evidence shows that pertinent folk theories about wisdom vary substantially across cultures as well. Next, we present empirical research on wisdom in everyday situations which demonstrates the systematic variability of wisdom-related characteristics as a function of situational demands and induced mindsets. To resolve the trait vs. state debate in wisdom, we argue for a whole trait theoretical framework, conceptualizing traits as a density distribution of states. Based on theoretical and empirical insights, we conclude by providing recommendations for best practices when measuring trait- and state-components of wisdom.