Huber and O'Reilly (2003) proposed that neural habituation aids perceptual processing, separating neural responses to currently viewed objects from recently viewed objects. However, synaptic depression has costs, producing repetition deficits. Prior work confirmed the transition from repetition benefits to deficits with increasing duration of a prime object, but the prediction of enhanced novelty detection was not tested. The current study examined this prediction with a same/different word priming task, using support vector machine (SVM) classification of EEG data, ERP analyses focused on the N400, and dynamic neural network simulations fit to behavioral data to provide a priori predictions of the ERP effects. Subjects made same/different judgements to a response word in relation to an immediately preceding brief target word; prime durations were short (50ms) or long (400ms), and long durations decreased P100/N170 responses to the target word, suggesting that this manipulation increased habituation. Following long duration primes, correct "different" judgments of primed response words increased, evidencing enhanced novelty detection. An SVM classifier predicted trial-bytrial behavior with 66.34% accuracy on held-out data, with greatest predictive power at a time pattern consistent with the N400. The habituation model was augmented with a maintained semantics layer (i.e., working memory) to generate behavior and N400 predictions. A second experiment used responselocked ERPs, confirming the model's assumption that residual activation in working memory is the basis of novelty decisions. These results support the theory that neural habituation enhances novelty detection, and the model assumption that the N400 reflects updating of semantic information in working memory..