Previous studies have shown a strong link between participants' appreh
ension about communicating and their perception of communicative compe
tence in both native (L1) and second (L2) languages. This apprehension
may intensify when participants communicate in the L2, especially if
they believe their level of L2 competence to be very low. This study e
xamines perceived competence in an L2 as a function of actual competen
ce and language anxiety. Thirty-seven young adult Anglophone students,
with widely varied competence in French, participated. They completed
scales of language anxiety and a modified version of the ''can-do'' t
est, which assessed their self-perceptions of competence on 26 French
tasks. They then attempted each of those tasks. We found that L2 langu
age anxiety, perceived L2 competence, and actual L2 competence interco
rrelated. However, regression analysis with actual proficiency level c
ontrolled showed that anxious students tended to underestimate their c
ompetence relative to less anxious students, who tended to overestimat
e their competence. Theoretical and practical implications are discuss
ed.