This article suggests that there are intrinsic links between humour and embarrassment and that both are crucial for the maintenance of social life. Goffman and others have claimed that embarrassment plays a key role in the maintenance of social order. However, it is argued that Goffman overlooked the role of ridicule in embarrassment. In consequence, he formulated a `nice-guy' theory of embarrassment, suggesting that onlookers empathize with the embarrassment of others and seek to diminish that embarrassment. By contrast, it is (...) suggested that the embarrassment of others is often a matter of laughter and enjoyment. Such a link between embarrassment and humour is crucial for the socialization of embarrassment, which depends on the possibility of ridicule. This is illustrated by an incident in Freud's classic case-history of Little Hans. The transformation of embarrassing incidents into humorous narrations is also discussed. It is suggested that the link between humour and embarrassment is theoretically significant, pointing the way to a reconstituted Freudian view for understanding the relations between the individual and social order. (shrink)