How do human observers comprehend their dynamic environment, such as when watching sport broadcasts on television, movies or natural actions? Instead of processing all information presented in this constant stream of information equally, observers segment the information stream into meaningful units, the so called events. In this project, we study how human observer construct event models of their dynamic environment and how they update these event models during the observation of dynamic scenes. Furthermore, we investigate the consequences of event model construction on human perception, such as the illusory perception of information that was actually missing in the dynamic environment.