Sleep and emotion are both powerful modulators of the long-term stability of episodic memories, but precisely how these factors interact remains unresolved. We assessed changes in item recognition, contextual memory, and affective tone for negative and neutral memories across a 12 h interval containing sleep or wakefulness in 71 human volunteers. Our data indicate a sleep-dependent stabilization of negative contextual memories, in a way not seen for neutral memories, item recognition, or across wakefulness. Furthermore, retention of contextual memories was positively associated with time spent in non-rapid eye movement sleep. Finally, our results offer partial support for the hypothesis that sleep attenuates emotional responses to previously memorized material.