Cultural self-awareness refers to an individual’s awareness of culture’s influence on the self. In the first part, I will demonstrate how such awareness develops from exposure to foreign cultures. With correlational and experimental studies, characteristics of foreign culture exposure and psychological mechanisms that account for the development were explored. In the second part, I will introduce how such awareness affects well-being, prosociality, cultural defense, and outgroup attitude. The current findings suggest that cultural self-awareness, as one’s realization of the link between one’s self and sociocultural environment, is crucial in identity, collective, and intergroup processes.