Human memory is known to be supported by sleep. However, less is known about the effect of sleep on false memory, where people remember events that never occurred. In the laboratory, false memories are often induced via the Deese-Roediger-McDermott (DRM) paradigm where participants are presented with semantically related words such as nurse, hospital, and sick (studied words). Subsequently, participants are likely to falsely remember that a related lure word such as doctor was presented. Multiple studies have examined whether these false memories are influenced by sleep, with contradictory results. A recent meta-analysis suggests that sleep may increase DRM false memory when short lists are used. We tested this in a registered report (N=488) with a 2 (Interval: Immediate vs. 12-hr Delay) x 2 (Test Time: 9AM vs. 9PM) between-participant DRM experiment, using short DRM lists (N = 8 words/list) and free recall as the memory test. We found that the Sleep and Wake participants were well-matched on their number of total responses, but those in the Sleep group produced fewer intrusions (i.e., words that were neither studied nor lure words), and when this was statistically controlled for, they showed a greater tendency to recall more critical lures as well as more studied words. Our findings support the view that sleep may facilitate gist abstraction and/or spreading activation, alongside strengthening/protecting newly encoded declarative memories.