Studies on negation processing often report a Polarity by Truth interaction: False affirmative sentences show longer response times and larger N400 ERPs relative to true affirmative sentences, whereas the effect of truth-value is reversed for negative sentences. This interaction has repeatedly been linked to variations in lexical associations, predictability, or to the need of constructing two subsequent mental representations during the comprehension of negative sentences. To disentangle the context-independent effect of negation as a syntactic operator from the context-dependent effect of predictability we ran five ERP-experiments employing a picture-sentence verification paradigm. The word's predictability was manipulated by varying the number of alternative sentence continuations provided by the context and making it equivalent for both sentence polarities. We show that predictability modulated the online processing of affirmative and negative sentences in a similar manner. Relative to the weakly constraining context, in the strongly constraining context, where the processor could form a unique prediction for a true sentence continuation, a smaller N400 response is observed when the prediction is confirmed (as in true sentences) and a larger N400 response when the prediction is violated (as in false sentences), for both sentence polarities. The effect of Truth is shown to be dependent on the predictability rather than sentence polarity and we argue that a large amount of negation effects reported in the literature (especially the Polarity by Truth interaction) may be due to variable predictability levels in affirmative and negative sentences. Polarity by Truth as well as Polarity by Context interactions observed in the N400 time window are further argued to indicate that negation modulates prediction mechanisms in sentence processing. In addition, we observe a long lasting positivity effect for negation, in both context conditions, for both truth-values and across all five experiments. This effect is argued to reflect a modulation of the P300b component and is discussed in terms of inhibition mechanisms caused by negation.