Two experiments examined the hypothesis that dual systems of stimulus evaluation for categorization can be observed in event-related potentials: one whose duration is indexed by the latency of the P3 component, and a second evident in a later frontal potential. Subjects categorized artificial animals by a "two out of three" rule. Stimuli with two visual features of their own category and one feature of a different category (i.e., near the boundary between categories) elicited very prolonged reaction times as compared to stimuli with three features from a single category. This RT delay was not accompanied by a delayed P3, suggesting that the P3 indexed only a first pass of stimulus evaluation. The near-boundary stimuli elicited more positive potentials than far-boundary stimuli at prefrontal and frontotemporal sites, suggesting that a secondary stage of stimulus evaluation was triggered when detection of single features or simple conjunctions was insufficient to support a correct decision. The frontal potential that was sensitive to categorization difficulty was of opposite polarity to frontal potentials previously observed in manipulations of working memory. The roles of frontal executive processes in categorization and memory tasks are discussed.Most cognitive theories of categorization posit multiple systems for learning object categories and categorizing objects (Ashby, Alfonso-Reese, Turken & Waldron, 1988;Knowlton, Squire & Gluck, 1994;. One important distinction is between categorization based on logical rules and categorization based on similarity to prototypes or exemplars (Allen & Brooks, 1991;Erickson & Kruschke, 1998;Johansen & Palmeri, 2002; Nosofsky & Palmeri, 2002;Smith, Patalano & Jonides, 1998). Several lines of evidence suggest that rule-based categorization is slower than familiarity-based categorization and places greater demands on working memory and selective attention (Smith et al., 1998). Consistent with this argument is evidence that the two strategies have different neural correlates, with rule-based categorization recruiting prefrontal and parietal cortices to a greater degree (Koenig et al., 2005;Grossman et al., 2002;Patalano, Smith, Jonides & Koeppe, 2001). Although hemodynamic imaging methods have offered some insights into the anatomical correlates of categorization strategies, event-related potentials (ERPs) offer complementary insights into the temporal characteristics of neural activity in addition to coarse-grain information about the brain regions engaged. Below, we review two distinct components of the ERP that appear to reflect temporally and neurally distinct Correspondence: Jonathan Folstein, Psychology Department, Vanderbilt University, 301 Wilson Hall, 111 21st Avenue South, Nashville, TN 37203. jonathan.r.folstein@vanderbilt.edu. 2 We also analyzed response-locked ERPs relative to the same pre-stimulus baseline used for the stimulus-locked averages (see Verleger et al., 2005 for a similar procedure), with results much like the analyses reported in the main text....