In 3 experiments, we investigate how anxiety influences interpretation of ambiguous facial expressions of emotion. Specifically, we examine whether anxiety modulates the effect of contextual cues on interpretation. Participants saw ambiguous facial expressions. Simultaneously, positive or negative contextual information appeared on the screen. Participants judged whether each expression was positive or negative. We examined the impact of verbal and visual contextual cues on participants' judgements. We used 3 different anxiety induction procedures and measured levels of trait anxiety (Experiment 2). Results showed that high state anxiety resulted in greater use of contextual information in the interpretation of the facial expressions. Trait anxiety was associated with mood-congruent effects on interpretation, but not greater use of contextual information.