Abstract: A method and system is disclosed to construct an interactive video menu. In the invention, an interactive video project is first established. One or more video clips are added to the interactive video project, with each of the video clips represented with a video frame contained therein. Thereafter, each of the video clips is parsed to identify one or more video chapters included in the video clip, with each of the video chapters also represented with a video frame contained therein. Therefore, a 2-level interactive video menu is created based on a menu template and hierarchical relationship between the video clips and their corresponding video chapters, with the first-level menu including one or more items respectively linked to second-level menus for the corresponding video clips, and the second-level menu including one or more items linked to playback commands for the corresponding video chapters in response to a user selection.