Peripersonal space (PPS) defines the portion of space where interactions between our body and the external environment more likely occur. There is no physical boundary defining the PPS with respect to the extrapersonal space, but PPS is continuously constructed by a dedicated neural system integrating external stimuli and tactile stimuli on the body, as a function of their potential interaction. This mechanism represents a primary interface between the individual and the environment. In this talk, I will present most recent evidence and highlight the current debate about the neural and computational mechanisms of PPS, its main functions and properties. I will discuss novel data showing how PPS dynamically shapes to optimize body-environment interactions. I will describe a novel electrophysiological paradigm to study and measure PPS, and show how this has been used to search for a basic marker of potentials of self-environment interaction in newborns and patients with disorders of consciousness. Finally, I will discuss how PPS is also involved in, and in turn shaped by, social interactions. Under these acceptances, I will discuss how PPS plays a key role in self-consciousness.