As described by early sociological research (Goffman, 1963, Behavior in public places: Notes on the social organization of gatherings), a typical behavioural pattern in public encounters between strangers is so‐called Civil Inattention (CI). CI describes a ritual of politely communicating having noticed the other while assuring non‐communication intentions. A typical example of showing CI is initially looking at the other person but then quickly averting the gaze. As argued earlier, CI fulfils a central role in the smooth functioning of a society. Also, CI gains new relevance in the digital era, in particular regarding privacy needs. Still, previous research on CI often remained on a theoretical or descriptive level, and its psychological functions have not been explored systematically. As an advancement, our study provides a deeper understanding of CI, exploring individual narratives, relevant psychological needs, and contextual factors. We conducted a qualitative interview study (N = 25) followed by an experimental online study (N = 353) with a 2 (presence of CI) × 2 (physical distance) mixed design. It shows that CI adds to well‐being and specifically addresses needs for relatedness, security, and autonomy. However, though Study 1 suggested physical distance as a relevant contextual factor, the present experimental manipulation in Study 2 did not show significant effects.