In this chapter the authors introduce the two main senses of self: a personal sense of self, which is related to our personal identity and self-narrative, and the observing/transcendent self. The observing/transcendent self is described as awareness itself that is subjectively experienced as the experience of being and conscious presence, and manifests in qualities that include mindfulness, compassion, interconnection and spirituality. The authors have developed a new model, the diamond model of the observing self, which describes the observing self and its relation to the contents of awareness. The model describes four core processes of mindful awareness and compassion: present moment awareness, acceptance, decentred awareness and compassion. In mindfulness- and compassion-oriented integrative psychotherapy (MCIP), the therapist encourages these core processes during the session so that the client brings mindful awareness and compassion to their inner experience. The chapter also presents the model of the triangle of relationship to internal experience that describes three main relationships to internal experience: being merged with the experience, being distanced from the experience, and being a loving witness to our experience. Both described models are important for tracking the client's experience in terms of mindfulness and compassion processes.