Individuals constantly encounter feedback from others and process this feedback in various ways to maintain positive situational state self-esteem (SSE) in relation to semantic-based or trait self-esteem (TSE). Individuals may utilize a data-driven, or episodic-based process that encodes positive, but not negative, self-relevant information automatically, or employ a semantic-driven process that manipulates encoded negative feedback post-hoc. It’s unclear, however, how these processes work either alone or in concert while individuals receive positive and negative feedback to modulate feedback encoding and subsequent SSE. Utilizing neural regions associated with semantic self-oriented and basic encoding processes (mPFC and PCC respectively), and time-frequency and Granger causality analyses to assess mPFC and PCC interactions, this study examined how encoding of positive and negative self-relevant feedback modulated individuals’ post-task SSE in relation to their TSE while continuous EEG was recorded. Among those with higher levels of TSE, the encoding of positive or negative feedback was not associated with SSE. Rather, higher SSE was associated with mPFC activity to all feedback and higher TSE. The relationship between TSE and SSE was moderated by mPFC-PCC communication such that increases in mPFC-PCC communication led to SSE levels that were consistent with TSE levels. Furthermore, Granger causality analyses indicated that individuals exhibited higher SSE to the extent mPFC influenced PCC in response to positive and negative feedback. Findings highlight the dynamic interplay between semantic self-oriented and basic encoding processes that modulate SSE in relation to TSE, to maintain more positive global selfperceptions in the moment and over time.