This paper develops a general approach to contextual reasoning in natural language processing. Drawing on the view of natural language interpretation as abduction (Hobbs et al., 1993), we propose that interpretation provides an explanation of how an utterance creates a new discourse context in which its interpreted content is both true and promi- nent. Our framework uses dynamic theories of semantics and pragmatics, formal theories of context, and models of attentional state. We describe and illustrate a Prolog implementation.