In this paper, we mention about various techniques in order to create ”socially intelligent virtual humans” which can interact with people using natural ways of communication. Such characters should have personality and emotions in order to engage the user to a believable interaction and make decisions based on their goals and motivations considering their past interactions and relationships with other characters. We particularly focus on computational models of personality, emotion, social relationships and episodic memory as well as present how those can be linked with decision making mechanisms in dialogue. Finally, we demonstrate our research to create long-term emotional interaction with virtual characters using an emotion model that we developed, which uses past interactions derived from episodic memory and then mention about our future research goals. CR Categories: I.2.11 [Artificial Intelligence]: Distributed Artificial Intelligence—Intelligent agents; I.3.7 [Computer...