Interactive Video Storytelling with Contextual Grounding

Interactive video storytelling enables viewers to actively steer how a video unfolds. However, once we allow viewers to intervene during generation, a new challenge arises: The viewer's request can have latent dependencies on both the grounding source and the current rendered video state. These dependencies may not be explicitly stated in any individual input, but emerge only when the source, rendered history, and new viewer intent are considered jointly. Existing interactive video generation systems primarily emphasize following viewer instructions, while source-grounded video generation methods focus on aligning generated content with an external narrative or knowledge source. This leaves a fundamental question underexplored: What context should a generation model ground on during interactive continuation, and how can heterogeneous, unstructured inputs be transformed into such grounding context? In this work, we formulate contextual grounding as the process of transforming heterogeneous input context into an executable constraint model for video generation. To address this challenge, we introduce VideoTaleInteract, which performs Structured Context Abstraction to recover grounded states and cross-context dependencies, Generation Constraints Induction to project relevant dependencies into candidate-specific constraints, and Constrained Video Generation to enforce these constraints through planning, verification, revision, and rendering. Across three video generation backbones, VideoTaleInteract consistently achieves the highest overall composite score, reaching an average absolute improvement of 10.3 points over the strongest per-backbone baselines. Detailed analysis further shows gains across both narrative and knowledge grounding, and reveals remaining challenges in dependency extraction, and faithful realization during video rendering.