To overrate something means to think it's better, more important, or more impressive than it really is. When people overrate a movie, they claim it's amazing when it's actually just okay. When someone overrates their own abilities at basketball, they think they're much better than they actually are.

You might hear someone say a popular video game is overrated when everyone raves about it but they find it disappointing. Teachers sometimes worry that students overrate how well they understand material, studying less than they should because they're overconfident.

The word suggests a gap between reputation and reality. A restaurant might be overrated if everyone says it's incredible but the food turns out to be ordinary. An athlete might be overrated if sports fans expect superstar performance but get average results.

People also overrate things they're excited about: you might overrate how fun a party will be, building it up in your mind until the real event can't possibly match your expectations. The opposite is underrate, when something deserves more credit than it gets. Being able to judge things accurately, without overrating or underrating them, helps you make better decisions and set realistic goals.