This paper presents a novel application of argumentation for automated Story Comprehension (SC). It uses argumentation to develop a computational approach for SC as this is understood and studied in psychology. Argumentation provides uniform solutions to various representational and reasoning problems required for SC such as the frame, ramification, and qualification problems, as well as the problem of contrapositive reasoning with default information. The grounded semantics of argumentation provides a suitable basis for the construction and revision of comprehension models, through the synthesis of the explicit information from the narrative in the text with the implicit (in the reader's mind) common sense world knowledge pertaining to the topic(s) of the story given in the text. We report on the empirical evaluation of the approach through a prototype system and its ability to capture both the majority and the variability of understanding of stories by human readers. This application of argumentation can provide an important test-bed for the more general development of computational argumentation.