This study examined the effect of fermented ginseng (FG) on memory impairment and β-amyloid (Aβ) reduction in models of Alzheimer’s disease (AD) in vitro and in vivo. FG extract was prepared by steaming and fermenting ginseng. In vitro assessment measured soluble Aβ42 levels in HeLa cells, which stably express the Swedish mutant form of amyloid precursor protein. After 8 h incubation with the FG extract, the level of soluble Aβ42 was reduced. For behavioral assessments, the passive avoidance test was used for the scopolamine-injected ICR mouse model, and the Morris water maze was used for a transgenic (TG) mouse model, which exhibits impaired memory function and increased Aβ42 level in the brain. FG extract was treated for 2 wk or 4 mo on ICR and TG mice, respectively. FG extract treatment resulted in a significant recovery of memory function in both animal models. Brain soluble Aβ42 levels measured from the cerebral cortex of TG mice were significantly reduced by the FG extract treatment. These findings extract was prepared by steaming and fermenting ginseng. of Aβ42 protein, which results in enhanced behavioral memory function, thus, suggesting that FG extract may be an effective preventive or treatment for AD.