This study examined how rumination and worry experienced within varying contexts of everyday life are associated with current‐moment and cross‐moment indicators of subjective well‐being. We also investigated if, in the context of social interaction, distracted communication uniquely predicts subjective well‐being and mediates the link between perseverative cognition and well‐being. Using experience sampling, we found that the effects of rumination and worry on subjective well‐being were social‐context dependent. Rumination experienced alone, relative to during interaction, was a stronger positive predictor of current and later‐in‐the‐day loneliness. In contrast, worry experienced alone, but not during interaction, negatively predicted later loneliness. Distracted communication accounted for unique variance in current affective well‐being and current and later loneliness, but its role as a mediator was uncertain.