The situation recognition system, to which this paper is devoted, receives as input a stream of time-stamped events; it performs recognition of instances of occurring situations, as they are developing, and it generates as output deduced events and actions to trigger. It is mainly a temporal reasoning system. It is predictive in the sense that it predicts forthcoming events relevant to its task, it focuses its attention on them and it maintains their temporal windows of relevance. Its main functionality is to recognize efficiently complex temporal patterns on the fly, while they are taking place. This system has been tested for the surveillance of an environment by a multisensory perception machine; it is being applied to monitoring a complex dynamic system.