Sacrificing own resources to punish norm violators is often regarded an altruistic act, promoting cooperation and fairness within social groups. However, recent studies highlight difficulties in interpreting third-party punishment as a prosocial and cooperative signal. Moving beyond abstract, decontextualized settings typically employed in economic game paradigms, we aimed to better understand the appraisal of observed punishment and punishers in real-world situations. To this end, we created and validated 24 written vignettes of everyday-life scenarios depicting interactions between a perpetrator, a victim, and a punisher. Across two preregistered experiments, we systematically manipulated key aspects of third-party punishment: transgression type and punishment type (property-oriented, corporal, or psychological; Experiment 1; N = 48) and punishment severity (weak or strong; Experiment 2; N = 50). Participants rated punishment adequacy and the punisher’s warmth, competence, and suitability as an interaction partner, whether as a friend or team leader. Results indicated preferences for psychological punishments, punishments that aligned with transgression type, and less severe punishments. Our findings support the notion that punishment is an ambiguous issue and reveal important contextual factors that contribute to its evaluation as a useful social strategy.