Standard interpolatory subdivision schemes and their underlying interpolating refinable functions are of interest in CAGD, numerical PDEs, and approximation theory. Generalizing these notions, we introduce and study \(n_s\) -step interpolatory \(\textsf{M}\) -subdivision schemes and their interpolating \(\textsf{M}\) -refinable functions with \(n_s\in \mathbb {N}\cup \{\infty \}\) and a dilation factor \(\textsf{M}\in \mathbb {N}\backslash \{1\}\) . We completely characterize \(\mathscr {C}^m\) -convergence and smoothness of \(n_s\) -step interpolatory subdivision schemes and their interpolating \(\textsf{M}\) -refinable functions in terms of their masks. Inspired by \(n_s\) -step interpolatory stationary subdivision schemes, we further introduce the notion of r-mask quasi-stationary subdivision schemes, and then we characterize their \(\mathscr {C}^m\) -convergence and smoothness properties using only their masks. Moreover, combining \(n_s\) -step interpolatory subdivision schemes with r-mask quasi-stationary subdivision schemes, we can obtain \(r n_s\) -step interpolatory subdivision schemes. Examples and construction procedures of convergent \(n_s\) -step interpolatory \(\textsf{M}\) -subdivision schemes are provided to illustrate our results with dilation factors \(\textsf{M}=2,3,4\) . In addition, for the dyadic dilation \(\textsf{M}=2\) and \(r=2,3\) , using r masks with only two-ring stencils, we provide examples of \(\mathscr {C}^r\) -convergent r-step interpolatory r-mask quasi-stationary dyadic subdivision schemes.