The computational system presented here, Psli3, uses the uniform framework of a production system architecture to carry out natural language understanding and generation in a well-integrated way. This is demonstrated primarily using intersentential ellipsis resolution, in addition to examples of definite reference resolution and interactive error correction. The system's conversational context arises naturally as the result of the persistence of the internal representations of previous utterances in working memory. Natural language input is interpreted within this framework using a modification of the syntactic technique of chart parsing, extended to include semantics, and adapted to the production system architecture. It provides a graceful way of handling ambiguity within this architecture, and allows separate knowledge sources to interact smoothly across different utterances in a highly integrated fashion. 
