This document discusses the importance of milieu, or setting, in storytelling. It defines milieu as placing characters in a particular physical and social context that provides the background for the story. There are two levels of milieu: the exterior component of physical setting and local attributes, and the interior component of atmosphere, social context, and how the character relates to their environment. The document provides questions to help writers situate characters within their milieu and connect the character to the setting. It includes an activity where readers select a character and place them in a new environment to imagine how they would react and interact in that new milieu.