The present investigation examined how three salient features of narrative thinking (situation model construction, linguistic concreteness, and perspective-taking) influenced the social inference process. Results of four experiments indicated that compared with those given other objectives, perceivers given narrative objectives were: (a) more likely to make situation rather than trait attributions for observed behaviors (Experiment 1), (b) less likely to make implicit trait inferences (Experiment 2), and (c) less likely to rely on behavior valence when making evaluative judgments (Experiment 4). Linguistic analyses indicated that narrative construction consistently entailed the creation of situation models of events and linguistic concreteness, but only situation model creation mediated the relationship between narrative and inferences. Experiment 3 confirmed the mediating role of situation models: Perceivers with narrative objectives made trait inferences only when behaviors were inconsistent with contextual information. The role of these core narrative features on social perceptions is discussed.