Abstract: An indirect address term refers to the form addressing the third party that is not directly involved in the interaction. It can build up the power relations among the three parties. Existing studies have failed to pay sufficient attention to indirect address terms in Mandarin Chinese, lacking an analytical framework that encompasses the lexicogrammar, interpersonal meaning, and situational parameters. To address this gap, this paper sets out to establish an interpersonal framework for indirect address terms in Mandarin Chinese based on the interstratal realisation among formality (as wording, i.e., formal, neutral and informal), power (as meaning, i.e., hierarchy, intimacy and solemnity), and their situational parameters (tenor, mode and field) within Systemic Functional Linguistics. To substantiate the framework, it is applied to a case study of the dialogue from In the Name of the People. This case study analyses the main characters’ use of indirect address terms and their interpersonal functions, unfolding their specific situational parameters. The results indicate that 1) from a bottom-up perspective, the exchange patterns of indirect address terms realise hierarchy, intimacy and solemnity (as meanings) between the interlocutors and the third party; 2) from a top-down perspective, the institutional, status and affect roles in tenor determine the meanings of hierarchy; in mode, the psychological distance, experiential distance and rhetorical mode manipulate the meanings of intimacy; the activity types, activity sequences, and material settings in field influence the meanings of solemnity.