This workshop explores the evolving intersection of computer vision and physics, where two competing perspectives—physics-based simulations versus data-driven approaches like video foundation models—seek to model the world effectively. By bringing together researchers from both fields, the event aims to foster collaboration, identify synergies, and advance applications in scientific research, generative AI, robotics, gaming, and extended realities (XR). Through presentations and discussions, the workshop will promote interdisciplinary dialogue to develop next-generation technologies that combine physics-based and data-driven methods, ultimately enhancing realistic simulations for immersive environments, automated tasks, and seamless virtual-physical integration.