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This paper describes the architecture of a cognitive system that interprets human manipulation actions from perceptual information (image and depth data) and that includes interacting modules for perception and reasoning. Our work contributes to two core problems at the heart of action understanding:(a) the grounding of relevant information about actions in perception (the perception-action integration problem), and (b) the organization of perceptual and high-level symbolic information for interpreting the actions (the sequencing problem). At the high level, actions are represented with the Manipulation Action Grammar, a context-free grammar that organizes actions as a sequence of sub events. Each sub event is described by the hand, movements, objects and tools involved, and the relevant information about these factors is obtained from biologicallyinspired perception modules. These modules track the hands and objects, and they recognize the hand grasp, objects and actions using attention, segmentation, and feature description. Experiments on a new data set of manipulation actions show that our system extracts the relevant visual information and semantic representation. This representation could further be used by the cognitive agent for reasoning, prediction, and planning.