Complex language and communication is one of the unique hallmarks that distinguishes humans from most other animals. Interestingly, the overwhelming majority of our communication consists of social topics involving self-disclosure and discussions about others, broadly construed as gossip. Yet the precise social function of gossip remains poorly understood as research has been heavily influenced by folk intuitions narrowly casting gossip as baseless trash talk. Using a novel empirical paradigm that involves real interactions between a large sample of participants, we provide evidence that gossip is a rich, multifaceted construct, that plays a critical role in vicarious learning and social bonding. We demonstrate how the visibility or lack thereof of others’ behavior shifts conversational content between self-disclosure and discussions about others. Social information acquired through gossip aids in vicarious learning, directly influencing future behavior and impression formation. At the same time, conversation partners come to influence each other, form more similar impressions, and build robust social bonds. Consistent with prior work, gossip also helps promote cooperation in groups without a need for formal sanctioning mechanisms. Altogether these findings demonstrate the rich and diverse social functions and effects of this ubiquitous human behavior and lay the groundwork for future investigations. •Gossip is a multi-faceted behavior that reflects multiple social functions•Gossip facilitates learning from others when direct observation is not possible•Gossip builds social connections and aligns social impressions and behavior•Gossip increases cooperative group behavior in public goods games Our folk intuitions and much empirical research narrowly cast gossip as baseless taboo trash talk. Jolly and Chang use a novel empirical paradigm to demonstrate how gossip is a rich, multifaceted construct, that plays a critical role in vicarious learning, social bonding, and impression formation and sharing.