Video object removal aims to eliminate target objects from videos while plausibly completing missing regions and preserving spatio-temporal consistency. Although diffusion models have recently advanced this task, it remains challenging to remove object-induced side effects (e.g., shadows, reflections, and illumination changes) without compromising overall coherence. This limitation stems from the insufficient physical and semantic understanding of the target object and its interactions with the scene. In this paper, we propose to introduce understanding into erasing from two complementary perspectives. Externally, we introduce a distillation scheme that transfers the relationships between objects and their induced effects from vision foundation models to video diffusion models. Internally, we propose a framewise context cross-attention mechanism that grounds each denoising block in informative, unmasked context surrounding the target region. External and internal guidance jointly enable our model to understand the target object, its induced effects, and the global background context, resulting in clear and coherent object removal. Extensive experiments demonstrate our state-of-the-art performance, and we establish the first real-world benchmark for video object removal to facilitate future research and community progress. Our code, data, and models are available at: https://github.com/WeChatCV/UnderEraser.