Background: Sleep is commonly assessed by recording the electroencephalogram (EEG) of the sleeping brain. As sleep assessments in a lab environment are cumbersome for both the participant and researcher, it would be highly desirable to record sleep EEG with a user-friendly and mobile device. Dry electrodes that are reusable, low-cost, and easy to apply would be an essential component of such a device. In this study, we developed a testing protocol to investigate the performance of novel flat-type dry electrodes for sleep EEG recordings in free-living conditions. Methods: Overnight sleep EEG, electrooculogram and electromyogram of four young and healthy participants were recorded at home. Two identical ambulatory recording devices, one using novel flat-type dry electrodes, the other using self-adhesive pregelled electrodes, simultaneously recorded sleep EEG. Between both electrode types, we then compared the signal quality, the incidence of artifacts, the sensitivity, specificity and inter-scoring reliability (Cohen's kappa) of sleep staging, as well as the agreement of important characteristics of sleep-specific EEG microstructure features, such as slow waves (0.5-4 Hz) and sleep spindles (10-16 Hz). Results: Our testing protocol comprehensively compared the two electrode types on a macro-and microstructure level of sleep. The dry and pre-gelled electrodes both had comparable signal quality and sleep staging was feasible with both electrodes. Also, slow-wave and spindle characteristics were similar. However, sweat artifacts were more prevalent in the flat-type dry electrodes. Conclusion: With a reliable testing protocol, the performance of dry electrodes can be compared to reference technologies and objectively assessed also in freeliving conditions.