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Inspired by early proposals in philosophy, dominant accounts of language posit a central role for mutual knowledge, either encoded directly in common ground, or approximated through other cognitive mechanisms. Using existing empirical evidence from language and memory, we challenge this tradition, arguing that mutual knowledge captures only a subset of the mental states needed to support communication. In a novel theoretical proposal, we argue for a cognitive architecture that includes separate, distinct representations of the self and other, and a cognitive process that compares these representations continuously during conversation, outputting both similarities and differences in perspective. Our theory accounts for existing data, interfaces with findings from other cognitive domains, and makes novel predictions about the role of perspective in language use. We term this new account the Multiple Perspectives Theory of mental states in communication.