This study examines how a group of bilingual ninth grade algebra students discussed two word problems stated in terms of "real life" contexts. Using a lens of mediated action (Wertsch, 1998), the analysis reveals two distinct ways that the problem contexts influenced the group's mathematical reasoning. In one problem, the problem context afforded particular ways of interpreting the given inscriptions, which had benefits as well as costs. In the other problem, the unfamiliar story and terminology appeared to hinder the group's mathematical reasoning. These two forms of context mediation are discussed in light of current research on the use of real life problems in mathematics education.