The theory of common ground is an important analytical tool in linguistics and intercultural pragmatics. Common ground has applicability in the characterization of speech acts and allows for distinguishing, for example, between an assertive, which requires a dynamic common ground, and a declarative that depends more on appropriate contextual factors for a successful realization. The theory of common ground is intrinsically linked to how knowledge relates to language and how a discourse advances between interlocutors. As such, the creation and maintenance of common ground has consequences for our stance on knowledge and what we KNOW, BELIEVE, DESIRE, and our INTENTIONS for action. There are many kinds of knowledge and a relevant portion of these are framed within a discourse situation, with common ground. We discuss the interfaces and relationship between situation, context, common ground, and knowledge including cultural knowledge, drawing on the thinking of Malinowski and Firth, and others. The challenges addressed are: (a) how do we ground the notions of context and common ground and their contents, with the appropriate level of specificity? (b) how do we represent them in such a way to become operationally useful in linguistic analysis? and (c) how do we show how context and common ground contribute to utterance meaning?