Video Large Language Models (Video LLMs) have shown impressive performance across a wide range of video-language tasks. However, they often fail in scenarios requiring a deeper understanding of physical dynamics. This limitation primarily arises from their reliance on appearance-based matching. Incorporating physical motion modeling is crucial for deeper video understanding, but presents three key challenges: (1) motion signals are often entangled with appearance variations, making it difficult to extract clean physical cues; (2) effective motion modeling requires not only continuous-time motion representations but also capturing physical dynamics; and (3) collecting accurate annotations for physical attributes is costly and often impractical. To address these issues, we propose PhyVLLM, a physical-guided video-language framework that explicitly incorporates physical motion into Video LLMs. Specifically, PhyVLLM disentangles visual appearance and object motion through a dual-branch encoder. To model physical dynamics over time, we incorporate a Neural Ordinary Differential Equation (Neural ODE) module, which generates differentiable physical dynamic representations. The resulting motion-aware representations are projected into the token space of a pretrained LLM, enabling physics reasoning without compromising the model's original multimodal capabilities. To circumvent the need for explicit physical labels, PhyVLLM employs a self-supervised manner to model the continuous evolution of object motion. Experimental results demonstrate that PhyVLLM significantly outperforms state-of-the-art Video LLMs on both physical reasoning and general video understanding tasks, highlighting the advantages of incorporating explicit physical modeling.