Interactive encoding and decoding based on binary low-density parity-check codes with syndrome accumulation (SA-LDPC-IED) is proposed and investigated. Assume that the source alphabet is <b xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">GF</b> (2), and the side information alphabet is finite. It is first demonstrated how to convert any classical universal lossless code <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Cn</i> (with block length <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">n</i> and side information available to both the encoder and decoder) into a universal SA-LDPC-IED scheme. It is then shown that with the word error probability approaching 0 subexponentially with <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">n</i> , the compression rate (including both the forward and backward rates) of the resulting SA-LDPC-IED scheme is upper bounded by a functional of that of <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Cn</i> , which in turn approaches the compression rate of <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Cn</i> for each and every individual sequence pair ( <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">xn</i> , <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">yn</i> ) and the conditional entropy rate H ( <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">X</i> | <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Y</i> ) for any stationary, ergodic source and side information ( <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">X</i> , <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Y</i> ) as the average variable node degree <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">l̅</i> of the underlying LDPC code increases without bound. When applied to the class of binary source and side information ( <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">X</i> , <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Y</i> ) correlated through a binary symmetrical channel with crossover probability unknown to both the encoder and decoder, the resulting SA-LDPC-IED scheme can be further simplified, yielding even improved rate performance versus the bit error probability when <i xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">l̅</i> is not large. Simulation results (coupled with linear time belief propagation decoding) on binary source-side information pairs confirm the theoretic analysis and further show that the SA-LDPC-IED scheme consistently outperforms the Slepian-Wolf coding scheme based on the same underlying LDPC code. As a by-product, probability bounds involving LDPC established in the course are also interesting on their own and expected to have implications on the performance of LDPC for channel coding as well.