Situational awareness refers to a pilot's awareness of what is happening around their aircraft both vertically and horizontally. This includes being able to project the near-term status and position of the aircraft in relation to hazards. Maintaining situational awareness involves preparation, vigilance, and avoiding distractions. It is important for pilots to monitor all instruments, communications, weather, and traffic. They must also share relevant information, stay ahead of potential issues, and speak up if they recognize overloads or potential compliance issues in themselves or other crew members.