| Summary: | The relation between self-enhancement and psychological adjustment has been debated for over 2 decades. This controversy is partly due to the variety of approaches implicated in the assessment of mainly self-enhancement but also psychological adjustment. We adopted a face-valid approach by statistically removing actual intellectual ability variance from self-rated intellectual ability variance. Study 1 (N? =?2,048), a concurrent Internet investigation, provided initial insight into the relation between intellectual self-enhancement and psychological adjustment. Study 2 (N?=?238), a longitudinal round-robin investigation, allowed a closer examination of the dynamic processes underlying this relation. Self-enhancement was positively linked to multiple indicators of intrapersonal and interpersonal adjustment, and predicted rank-order increases in adjustment over time. The links between intellectual self-enhancement and intrapersonal adjustment were mediated by self-esteem. Finally, the interpersonal costs and benefits of self-enhancement systematically varied depending on methodology
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