The chapter examines the relationship of three knowledges: linguistic knowledge, conceptual knowledge and encyclopedic knowledge. It is argued that within the socio-cultural background knowledge we should distinguish between conceptual knowledge and encyclopedic knowledge. According to the model described in the chapter, meaning is constructed in the dynamic interplay of actual situational context and prior context encapsulated in lexical items. The context represents the actual, present, situational, ever-changing side of socio-cultural background and the lexical item(s) used in the interaction encapsulate previous experiences and relations in the socio-cultural background.