Stress is a concept that can be studied using a variety of theoretical approaches, with a focus on the individual’s perceptions, the external stressor, or the physiological reactions of stress responding. However these approaches are often used independently, when they can be used complementarily to understand the nuanced relationship between the individual and the situation when appraising stressors as challenges or threats. The current study examined the relationship between individual differences in perceptions, situational strength (both as a categorical and a continuous predictor), and physiological reactions in a leadership task. Situational strength and leadership self-efficacy were found to interact, such that those high is LSE reported more appraisals of challenge as situational strength increased.