Interactive world models extend video generation from offline clip synthesis toward persistent simulation of interactive virtual worlds, enabling applications in games, robotics, embodied agents, and XR. Achieving stable long-horizon interactive generation, however, remains challenging, as the model must simultaneously preserve scene geometry, dynamic consistency, and camera control while supporting real-time autoregressive generation. Building upon Matrix-Game 3.0, we present Matrix-Game 3.5, as shown in Figure 1, which advances real-time interactive world generation toward geometry-aware and long-horizon consistent simulation through three key improvements. First, we propose a unified geometry-aware memory framework, whose patch-memory and tiled-PRoPE components introduce no additional learnable parameters, combining explicit 3D patch retrieval with projective camera conditioning to enable geometry-consistent camera control and faithful long-horizon scene recall. Second, we introduce a static-dynamic disentangled world representation that separately models static scene geometry and dynamic subjects, preserving both geometric consistency and subject identity throughout long-horizon generation. Third, we develop a two-stage progressive real-time distillation framework that converts a bidirectional diffusion model into a few-step causal generator through Perceptual Flow Matching and curriculum based Self-Rollout DMD, enabling minute-long real-time interactive generation. Extensive experiments demonstrate that, with a unified training corpus spanning Unreal simulation environments, open-world games, and internet videos, MatrixGame 3.5 achieves strong performance in long-horizon scene recall, precise camera control, subject consistency, prompt-driven world generation, and stable real-time open-world interaction.