This paper describes a narrative-based interactive learning environment which aims to elucidate reasoning using interactive scenarios that may be used in training novices in decision-making. Its design is based on an approach to generating narrative from knowledge that has been modelled in specific decision/reasoning domains. The approach uses a narrative model that is guided partially by inference and contextual information contained in the particular knowledge representation used, the generic/actual argument model of structured reasoning. The approach is described with examples in the area of critical care nursing training. A study of the effectiveness of this approach on learning outcomes was conducted with final year nursing students and provides evidence of improved learning outcomes. (Contains 4 tables and 7 figures.)