Diverse bilingual experiences have implications for language comprehension, including pragmatic elements such as verbal irony. Irony comprehension is shaped by an interplay of linguistic, cognitive, and social factors, including individual differences in bilingual experience. We examined the relationship between individual differences related to bilingualism, specifically, the capacity to understand others' mental states and ambient exposure to language diversity, on irony comprehension. We tested 54 healthy bilingual adults, living in a linguistically diverse region-Montréal, Canada-on an irony comprehension task. This task involved reading positive and negative short stories that concluded with an ironic or literal statement, which were rated on appropriateness and perceived irony. While both irony forms were rated as less appropriate and more ironic than literal statements, ironic criticisms (following a negative context) were rated as more appropriate and higher in perceived irony than ironic compliments (following a positive context). As expected, these ratings varied as a function of individual differences in mentalizing and neighborhood language diversity. Greater mentalizing patterned with more appropriate ratings to ironic statements in high language diversity neighborhoods and with less appropriate ratings to ironic statements in low language diversity neighborhoods. Perceived irony ratings to ironic compliments increased with mentalizing as neighborhood language diversity increased. These results indicate that pragmatic language comprehension and its social cognitive underpinnings may be environmentally contextualized processes.