Abstract
A new comprehensive framework for narrative understanding has been developed. Its centerpiece is a new situational logic calledEpisodic Logic, a knowledge and semantic representation well-adapted to the interpretive and inferential needs of general NLU. The most distinctive features of EL is its natural language-like expressiveness. It allows for generalized quantifiers, lambda abstraction, sentence and predicate modifiers, sentence and predicate reification, intensional predicates, unreliable generalizations, and perhaps most importantly, explicit situational variables linked to arbitrary formulas that describe them. These allow episodes to be explicitly related in terms of part-whole, temporal and causal relations. Episodic logical form is easily computed from surface syntax and lends itself to effective inference