False memory for context activates the parahippocampal cortex

Previous studies have reported greater activity in the parahippocampal cortex during true memory than false memory, which has been interpreted as reflecting greater sensory processing during true memory. However, in these studies, sensory detail and contextual information were confounded. In the present fMRI study, we employed a novel paradigm to dissociate these factors. During encoding, abstract shapes were presented in one of two contexts (i.e., moving or stationary). During retrieval, participants classified shapes as previously "moving" or "stationary." Critically, contextual processing was relatively greater during false memory ("moving" responses to stationary items), while sensory processing was relatively greater during true memory ("moving" responses to moving items). Within the medial temporal lobe, false memory versus true memory produced greater activity in the parahippocampal cortex, whereas true memory versus false memory produced greater activity in the hippocampus. The present results indicate that the parahippocampal cortex mediates contextual processing rather than sensory processing.