Recent research indicates the apparent paradox that social anxiety may be associated with both self-focused attention and selective attention to external social threat cues. A naturalistic paradigm was designed to explore both processes. High and low socially anxious individuals were asked to make a speech to a monitor displaying six people whom they believed to be watching them live. Two audience members exhibited only positive behaviours, two only neutral ones and two only negative behaviours. In contrast to the low social anxiety group who selectively discriminated positive audience members, the high social anxiety group selectively discriminated the negative individuals, yet they were no more accurate at discriminating the negative behaviours the audience members had performed and they reported more self-focused attention than the low social anxiety group. The effects remained while covarying for differences in dysphoria. The results indicate that socially anxious individuals base their judgements of being disapproved by others on limited processing of their social environment.