Lexical inference through reading is considered an important method for vocabulary building; however, empirical research has not consistently offered strong evidence of the application of lexical inference in second language vocabulary learning. A recently burgeoning line of research focuses on second language (L2) lexical inference of compounds in Chinese, a language that is both orthographically and typologically distant from English. In this study, we asked intermediate level Chinese L2 learners to think aloud while performing inferencing activities. We discuss the benefit of supportive context to inferencing and learning, and learners' coordinate and interactive use of context and word-internal cues. Further, we proposed a model that captures such interactivity and highlights the composite of Chinese L2 learners' intraword awareness. This suggests that interactive use of various cue sources and a simultaneous focus on form and on meaning can lead to encouraging outcomes for lexical inferencing and retention.