The face inversion effect is a defection in performance in recognizing inverted faces compared with faces presented in their usual upright orientation typically believed to be specific for facial stimuli. McLaren (1997) was able to demonstrate that (a) an inversion effect could be obtained with exemplars drawn from a familiar category, such that upright exemplars were better discriminated than inverted exemplars; and (b) that the inversion effect required that the familiar category be prototype-defined. In this article, we replicate and extend these findings. We show that the inversion effect can be obtained in a standard old/new recognition memory paradigm, demonstrate that it is contingent on familiarization with a prototype-defined category, and establish that the effect is made up of two components. We confirm the advantage for upright exemplars drawn from a familiar, prototype-defined category, and show that there is a disadvantage for inverted exemplars drawn from this category relative to suitable controls. We also provide evidence that there is an N170 event-related potential signature for this effect. These results allow us to integrate a theory of perceptual learning originally proposed by McLaren, Kaye, and Mackintosh (1989) with explanations of the face inversion effect, first reported by Yin.