Indirect effects occurring through chains of direct species interactio
ns have been shown to be important in many communities. If indirect ef
fects have strong ecological effects, then they must also have strong
evolutionary effects through natural selection. We consider how indire
ct effects, both positive and negative, combine with positive and nega
tive direct effects to influence evolution between interacting species
. Any one species can evolve in response to direct interactions with o
ther species by changing its ''response'' to the presence of the other
species or changing its ''effect'' on the species. We argue that the
direction (positive or negative) of the direct and indirect effects wi
ll determine whether traits related to ''response'' or ''effect'' are
most likely to be subject to natural selection. Further, covariance pa
tterns of species in the same community should increase when direct an
d indirect effects between species act in the same direction, resultin
g in greater compartmentalization of such communities.