Highlights A single overarching theory of novelty and memory has been difficult to attain. Conflicting findings showing that novelty can enhance and impair memory in cases. Predictive coding framework is able to shed new light on different types of novelty. This has important consequences for the effect of novelty on declarative memory.

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The schema-linked interactions between medial prefrontal and medial temporal lobe (SLIMM) model predicts that memory for object locations is a U-shaped function of the expectancy of those locations. Using immersive virtual reality, we presented participants with 20 objects in locations that varied in their congruency with a kitchen schema. Bayes factors across four experiments (137 adults in total) confirmed the (preregistered) prediction of better memory for highly expected and unexpected locations relative to neutral locations. This U shape was found in location recall and in forced-choice recognition in which the foil locations were matched for expectancy, controlling for the bias toward guessing expected locations. A second prediction was that the two ends of the U shape are associated with different expressions of memory: recollection of unexpected locations and familiarity for expected locations. BFs, propagated across experiments, provided evidence against this second prediction; recollection was associated with both ends of the U shape. These findings further constrain theories about the role of schema in episodic memory.