The present review focuses on the utility of the amplitude of P3 of as a me
asure of processing capacity and mental workload. The paper starts with a b
rief outline of the conceptual framework underlying the relationship betwee
n P3 amplitude and task demands, and the cognitive task manipulations that
determine demands on capacity. P3 amplitude results are then discussed on t
he basis of an extensive review of the relevant literature. It is concluded
that although it has often been assumed that P3 amplitude depends on the c
apacity for processing task relevant stimuli, the utility of P3 amplitude a
s a sensitive and diagnostic measure of processing capacity remains limited
. The major factor that prompts this conclusion is that the two principal t
ask variables that have been used to manipulate capacity allocation, namely
task difficulty and task emphasis, have opposite effects on the amplitude
of P3. I suggest that this is because, in many tasks, an increase in diffic
ulty transforms the structure or actual content of the flow of information
in the processing systems, thereby interfering with the very processes that
underlie P3 generation. Finally, in an attempt to theoretically integrate
the results of the reviewed studies, it is proposed that P3 amplitude refle
cts activation of elements in a event-categorization network that is contro
lled by the joint operation of attention and working memory.