This chapter explored the effects of proficiency on pragmatic and grammatical awareness among a group of learners of Chinese as a second language (L2), a less studied learner population in interlanguage pragmatics. Thirty participants who were studying Chinese in a foreign language context (CFL) took part in the study. They were divided into two groups, i.e., lower-proficiency vs. higher-proficiency, based on their scores in a Chinese proficiency test. All participants completed a judgment task that measured their pragmatic and grammatical awareness in Chinese expressions of gratitude. The results showed that higher-proficiency participants outperformed their lower-proficiency counterparts in terms of recognition, severity rating, and correction of pragmatic and grammatical errors, but overall, these CFL learners were limited in L2 pragmatic awareness. Based on the findings, pedagogical implications are proposed as to how to promote pragmatic awareness in CFL classrooms.