Learning how to generate descriptions of images or videos received major interest both in the Computer Vision and Natural Language Processing communities. While a few works have proposed to learn a grounding during the generation process in an unsupervised way (via an attention mechanism), it remains unclear how good the quality of the grounding is and whether it benefits the description quality. In this work we propose a movie description model which learns to generate description and jointly ground (localize) the mentioned characters as well as do visual co-reference resolution between pairs of consecutive sentences/clips. We also propose to use weak localization supervision through character mentions provided in movie descriptions to learn the character grounding. At training time, we first learn how to localize characters by relating their visual appearance to mentions in the descriptions via a semi-supervised approach. We then provide this (noisy) supervision into our description model which greatly improves its performance. Our proposed description model improves over prior work w.r.t. generated description quality and additionally provides grounding and local co-reference resolution. We evaluate it on the MPII Movie Description dataset using automatic and human evaluation measures and using our newly collected grounding and co-reference data for characters.