Abstract：Shared reality is a sense of experienced commonality of inner states with others about an object. Inner states include feelings, beliefs, or evaluations. Communication plays an important role in creation, development, and functioning of shared reality. The creation of shared reality is synergized by epistemic motivation and relational motivation. This role is specifically demonstrated through three elements of communication, including communication subject, communication object and information stimulation. Based on the interpersonal-intergroup behavior continuum, the function of shared reality is fully exploited in different fields at three levels, including interpersonal communication, intragroup communication and intergroup communication. Example domains are intimacy, culture, and stereotypes. Future study should expand and improve the research methods and mechanisms of shared reality, strengthen the organic combination of shared reality and related theories and fields, and actively use shared reality to explain current social phenomena.