Based on previous studies, this study used event-related potential to investigate the self-referential processing under the case of context. The characteristics at different levels of self-reference processing and its neural mechanisms under situational conditions To extend the results of the previous studies and discuss more profoundly, we designed the experiment to which added the individual self-referential and collective self-referential stimuli, and compared the processing course with each other. In experiment, we used the lexical decision task, and took the characteristic adjectives as individual self-referential and collective self-referential stimuli. To investigate the characteristics of the two self-referential processing, the researchers also took the situation into consideration, and placed the individual self-referential processing and collective self-referential processing in different situations. In experiment, we used the decision task, in company with unrelated individualism music and collectivism music as background, three characteristic adjectives as target stimulus, which is totally six types of stimuli. In experiment, we discover that under the two musical conditions, P300 amplitude evoked by individual self-referential stimuli is larger than the collective self-referential stimuli, and the collective self-referential stimuli are larger than non-self stimuli. Under the two musical conditions, P300 amplitude evoked by the individual self-referential stimuli is significantly different, and the collective self-referential stimuli triggered are no significantly different. Compared with the self-related effects or self-referential effect that has been demonstrated on previous studies, this study used electrophysiological methods to verify the existence of self-referential effect. It proved that individual self-referential stimuli are processed better than collective self-referential stimuli and non-self-referential stimuli. The results show that the collective self is similar with the well-known individual self, and is a very important psychological component of human. Compared with collective self-referential stimuli, individual self-referential stimuli is significantly different. In a different situation, compared with collective self-referential processing, individual self-referential processing is more different and more vulnerable to emotional interference, and shows the characteristics of instability. The neural mechanisms of individual and collective self-referential processing is different. The former is based on the right hemisphere and the latter on the left hemisphere. These results also may indicate that compared with the collective self, individual self is the core aspect of self.