Newly formed memories aren't quarantined one from another when first encoded; rather, they are interlinked with other memories that were encoded in temporal proximity or share semantic features. In this study, we selectively biased memory processing during sleep in humans to test the hypothesis that memories' contexts influence their consolidation. Participants formed 18 idiosyncratic narratives, each linking four objects together. They then memorized random on-screen spatial positions assigned to each of the 72 objects. During sleep, 12 object-specific sounds were unobtrusively presented, thereby cuing the associated memories and improving spatial recall for those objects. As predicted, memory for uncued objects that were contextually linked with cued objects benefited as well. The correlational structure of spectral power for electrophysiological responses revealed that sleep spindles supported context reinstatement and predicted context-related memory benefits. Moreover, context-specific electrophysiological activity patterns emerged during sleep. We conclude that when an individual memory is reactivated during sleep, the corresponding encoding context is also reinstated, impacting consolidation and enhancing subsequent retrieval of associated knowledge.