Recent proposals have attributed a key role to novelty in the formation of new episodic memories. These proposals are based on evidence of enhanced memory and greater metabolic activity in the hippocampus in response to novel relative to familiar materials. However, such novelty effects are incongruous with long-standing observations that familiar items and lists are associated with better memory than novel ones. In four experiments, I explored possible reasons for this apparent discrepancy. In Experiment 1, I directly tested whether previously observed novelty effects were the result of novelty, discrimination demands, or both. I used linguistic materials (proverbs) to replicate the novelty effect but found it occurred only when familiar items were subject to source confusion. In Experiment 2, to examine better how novelty influences episodic memory, I used experimentally familiar, pre-experimentally familiar, and novel proverbs in a paradigm designed to overcome discrimination demand confounds. Memory was better for both types of familiar proverbs. These cognitive results indicate that familiarity, not novelty, leads to better episodic memory for studied items, regardless of whether familiarity is experimentally induced or based on prior knowledge. I also conducted two fMRI experiments to evaluate the neural correlates of the encoding of novel and familiar forms of information. In Experiment 3, I compared the neural encoding correlates of source memory for novel and familiar visual scenes using fMRI. Replicating previous neuroimaging studies, I observed an anterior novelty-sensitive region of the hippocampus specialized in novelty encoding. Unlike past studies, I also probed for familiarity-encoding regions and identified such regions in the posterior hippocampus. I replicated this pattern in Experiment 4 using proverbs as stimuli. As in Experiment 2, I found the effect held whether familiarity was based on prior knowledge or experimental induction. In both fMRI experiments, anterior and posterior hippocampal regions were functionally connected with different large-scale networks, helping to explain local variation in hippocampal functional specialization in terms of different neural contexts. Together, these experiments show that stimulus familiarity enhances episodic memory for materials, and that novelty is processed differently, not preferentially, in the hippocampus. A new model of hippocampal novelty processing is proposed.

Recent proposals have attributed a key role to novelty in the formation of new episodic memories. These proposals are based on evidence of enhanced memory and greater metabolic activity in the hippocampus in response to novel relative to familiar materials. However, such novelty effects are incongruous with long-standing observations that familiar items and lists are associated with better memory than novel ones. In four experiments, I explored possible reasons for this apparent discrepancy. In Experiment 1, I directly tested whether previously observed novelty effects were the result of novelty, discrimination demands, or both. I used linguistic materials (proverbs) to replicate the novelty effect but found it occurred only when familiar items were subject to source confusion. In Experiment 2, to examine better how novelty influences episodic memory, I used experimentally familiar, pre-experimentally familiar, and novel proverbs in a paradigm designed to overcome discrimination demand confounds. Memory was better for both types of familiar proverbs. These cognitive results indicate that familiarity, not novelty, leads to better episodic memory for studied items, regardless of whether familiarity is experimentally induced or based on prior knowledge. I also conducted two fMRI experiments to evaluate the neural correlates of the encoding of novel and familiar forms of information. In Experiment 3, I compared the neural encoding correlates of source memory for novel and familiar visual scenes using fMRI. Replicating previous neuroimaging studies, I observed an anterior novelty-sensitive region of the hippocampus specialized in novelty encoding. Unlike past studies, I also probed for familiarity-encoding regions and identified such regions in the posterior hippocampus. I replicated this pattern in Experiment 4 using proverbs as stimuli. As in Experiment 2, I found the effect held whether familiarity was based on prior knowledge or experimental induction. In both fMRI experiments, anterior and posterior hippocampal regions were functionally connected with different large-scale networks, helping to explain local variation in hippocampal functional specialization in terms of different neural contexts. Together, these experiments show that stimulus familiarity enhances episodic memory for materials, and that novelty is processed differently, not preferentially, in the hippocampus. A new model of hippocampal novelty processing is proposed.