-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 E/GBqDQJTQk/ILs1baTuXmXbiHtAEmtJ7YEUy/jrDEbU9imJfgyukvMpMaBsyZpD
 1qJaHhsTV/peqnDHibFO0g==

<SEC-DOCUMENT>0001291222-04-000002.txt : 20040520
<SEC-HEADER>0001291222-04-000002.hdr.sgml : 20040520
<ACCEPTANCE-DATETIME>20040520171656
ACCESSION NUMBER:		0001291222-04-000002
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040519
FILED AS OF DATE:		20040520

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Hill Mark E
		CENTRAL INDEX KEY:			0001291222

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27385
		FILM NUMBER:		04822047

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		317-571-2000

	MAIL ADDRESS:	
		STREET 1:		12900 NORTH MERIDIAN
		STREET 2:		SUITE 200
		CITY:			CARMEL
		STATE:			IN
		ZIP:			46032

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTERACTIVE INTELLIGENCE INC
		CENTRAL INDEX KEY:			0001083318
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				351933097
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		8909 PURDUE ROAD
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46268
		BUSINESS PHONE:		3178723000

	MAIL ADDRESS:	
		STREET 1:		8909 PURDUE ROAD
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46268
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-05-19</periodOfReport>

    <issuer>
        <issuerCik>0001083318</issuerCik>
        <issuerName>INTERACTIVE INTELLIGENCE INC</issuerName>
        <issuerTradingSymbol>ININ</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001291222</rptOwnerCik>
            <rptOwnerName>Hill Mark E</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>7601 INTERACTIVE WAY</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>INDIANAPOLIS</rptOwnerCity>
            <rptOwnerState>IN</rptOwnerState>
            <rptOwnerZipCode>46278</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Common Stock (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5.72</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-05-19</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>20000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-05-19</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>20000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>20000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Option grant - #8 blank</footnote>
        <footnote id="F2">Option becomes exercisable 25% on 5/19/05, 25% on 5/19/06, 25% on 5/19/07 and 25% on 5/19/08.</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>Ashley Vukovits  Attorney-in-fact</signatureName>
        <signatureDate>2004-05-20</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----