Sleep is thought to play an important role in memory consolidation. Here we tested whether sleep alters the subjective value associated with objects located in spatial clusters that were navigated to in a large-scale virtual town. We found that sleep enhances a generalization of the value of high-value objects to the value of locally clustered objects, resulting in an impaired memory for the value of high-valued objects. Our results are consistent with (a) spatial context helping to bind items together in long-term memory and serve as a basis for generalizing across memories and (b) sleep mediating memory effects on salient/reward-related items.[Supplemental material is available for this article.]Sleep appears to play an important role in memory consolidation (Diekelmann and Born 2010;Spiers and Bendor 2014;Walker and Stickgold 2010). This has been demonstrated for both declarative (Marshall and Born 2007;Rasch et al. 2007;Lahl et al. 2008) and nondeclarative memories (Fischer et al. 2002;Ditye et al. 2013).Sleep not only appears to improve memory performance but enhances generalization from overlapping experiences Inostroza and Born 2013;Stickgold and Walker 2013). Examples can be found in statistical learning ), relational memory (Ellenbogen et al. 2007Lau et al. 2011) and false memory paradigms (Payne et al. 2009).In addition to memory integration, sleep has also been shown to play a role in strengthening memories based on their significance. For example, sleep preferentially consolidates emotional memories, over neutral memories, within procedural memory (Javadi et al. 2011) and declarative memory tasks (Hu et al. 2006;Payne et al. 2008; for review, see Walker (2010)). Similarly, sleep appears to favor memories with future relevance and importance (Wilhelm et al. 2011;Van Dongen et al. 2012;Perogamvros et al. 2013). For example, memories for items with greater reward show selective sleep-dependent memory consolidation (Fischer and Born 2009).However, not all studies have supported the view that sleep selectively enhances memory for salient experiences. Several studies have shown the amount of value or reward associated with items does not necessarily modulate sleep-dependent memory consolidation Tucker et al. 2011;Baran et al. 2013). Indeed, when post-sleep task performance determines how much reward can be gained, sleep can impair memory performance (Stamm et al. 2014).While research has begun to explore how different stimuli properties affect sleep-dependent memory such studies used discrete, sequentially presented stimuli, with fixed temporal durations. This stands in contrast to real-world settings, where stimuli such as objects exist embedded in a spatially organized context and items are often encountered on several different occasions as part of travel through the world. The relative locations of places in the real world can play an important role in structuring our memories (Mou and McNamara 2002;Mou et al. 2004Mou et al. , 2007. Some studies have provided evidence that sleep improves spatial memory...