Banter, a form of social communication, is perceived to enhance social cohesion between friends in online and offline contexts. A fine line between banter and bullying behaviours exists however, with some instances of banter perceived as bullying, cyberbullying, and relational aggression. Two qualitative studies explored university students' understanding and experiences of banter. Study 1 reports the findings from a content analysis of open-ended survey responses obtained from 190 UK-based psychology undergraduate students (18-35 years; 24 male, 166 female). Results suggested that students perceived banter to be indicative of humorous, positively intentioned social exchanges between friends, with few inferring potential links to negative behaviours. Study 2 data was generated from four focus groups (n = 21; 18-26 years; 15 female, 5 male, and 1 non-binary) guided by semi-structured interviews and banter/bullying vignettes. Interpretative phenomenological analysis identified four key themes: characteristics, social context, intent, and self-preservation. Discussions highlighted how students' evaluations of banter were more complex than the results of study 1 had inferred. Students differentiate social interactions, using numerous verbal and text-based communication cues, and social rules of engagement to appraise and interpret intent. The study contributes to the currently sparse literature concerning university students' use and experience of banter in offline and digital settings.