Semantically associated and unassociated word pairs were embedded in n
ormal meaningful sentences and in sentences that were semantically ano
malous throughout. The influence of lexical context was isolated via c
omparison of responses to the second words of the associated and unass
ociated pairs. The influence of sentence-level context was isolated by
comparing responses to the same words in the two sentence types. Subj
ects of high, medium, and low working memory capacity (as evaluated by
the reading span test) showed modulations of event-related brain pote
ntials in response to lexical context. In contrast, only the high- and
medium-capacity groups were responsive to purely sentence-level seman
tic context. The results demonstrate that sentential context influence
s the processing of words in intermediate sentence positions at normal
reading speeds, but that the on-line utilization of this context is m
ore demanding of working memory than single-word contexts.