Interfirm relationships involve uncertainty and risks, and scholars argue that trust is important to successfully manage them. Despite extensive attention to trust, relatively little is known about how distrust, as distinct from trust, affects firm’s ability to manage uncertainty in interfirm relationships. In this paper, we drew on a case study of the Swedish robotics and automation industry and explore the role of trust and distrust in relationships with elements of both cooperation and competition—coopetition. In line with the stream of research that views trust and distrust as distinct, yet interrelated phenomena, we illustrate that they consist of distinct beliefs based upon perceptions of the other party, distinct behavioral manifestations, and each have their distinct positive and negative outcomes. We extend the research on trust and distrust as well as on coopetition by exploring the role of trust and distrust in coping with uncertainties while simultaneously realizing the benefits of coopetitive interfirm relationships. We suggest that by pursuing a balance of trust and distrust, a firm can experience the benefits of what we call the practice of watchful blindness. Watchful blindness enables firms to embrace uncertainty related to coopetition as it enhances foresightfulness and facilitates forbearance.