The workshop will focus on physical reliability and effective interactivity in world models for applications requiring precise physical reasoning and dense environmental interactions, such as robotics, autonomous systems, and multi-agent interactions. Beyond generating realistic predictions, world models must enforce physical consistency through differentiable physics, hybrid modeling, and adaptive simulation techniques. By bringing together researchers from machine learning, computer graphics, and physics-based modeling, the workshop will explore classical and cutting-edge approaches to aligning world models with real-world physics and extending them beyond simulation.