Abstract Mimicry is widely used to exemplify natural selection’s power in promoting adaptation. Nonetheless, it has become increasingly clear that mimicry is frequently imprecise. Indeed, the phenotypic match is often poor between mimics and models in many Batesian mimicry complexes and among co-mimics in many Müllerian mimicry complexes. Here, we consider whether such imperfect mimicry represents an evolutionary compromise between predator-mediated selection favoring mimetic convergence on the one hand and competitively mediated selection favoring divergence on the other hand. Specifically, for mimicry to be effective, mimics and their models/co-mimics should occur together. Yet, co-occurring species that are phenotypically similar often compete for resources, successful reproduction, or both. As an adaptive response to minimize such costly interactions, interacting species may diverge phenotypically through an evolutionary process known as character displacement. Such divergence between mimics and their models/co-mimics may thereby result in imperfect mimicry. We review the various ways in which character displacement could promote imprecise mimicry, describe the conditions under which this process may be especially likely to produce imperfect mimicry, examine a possible case study, and discuss avenues for future research. Generally, character displacement may play an underappreciated role in fostering inexact mimicry.