Phase reset of parahippocampal electrophysiological oscillations in the theta frequency range is said to contribute to item encoding and retrieval during spatial navigation. Although well-studied in non-human animals, this mechanism is poorly understood in humans. Previously we found that feedback stimuli presented in a virtual maze environment elicited a burst of theta power over right-posterior areas of the human scalp, and that the power and phase angle of these oscillations were greater following right turns compared to left turns in the maze. Here we investigated the source of this effect with functional magnetic resonance imaging. Consistent with our predictions, we found that 1) feedback encountered in the maze task activated right parahippocampal cortex (PHC), 2) right PHC was more activated by rewards following right turns compared to left turns in the maze, and 3) the rightward-biased activation was more pronounced in individuals who displayed good spatial abilities. These findings support our previous electrophysiological findings and highlight, in humans, a role for PHC theta oscillations in encoding salient information for the purpose of spatial navigation.