The effect of aging was studied on emotional word recognition processes. In an episodic memory task young (18 - 26 years, N = 44) and elderly (60 - 71 years N = 47) adults were instructed to memorize a set of emotional words while EEG recording was performed. Memory performance was measured by a recognition test. The N400 and late positive complex (LPC) event-related potential components elicited by new and old words were analyzed. Decreased recognition accuracy and slower reaction time were found in the elderly irrespective of stimulus valence, except for correct rejection of neutral words, where the difference between age groups was not significant. The old/ new effect on the N400 was more robust in the young but for the LPC was more conspicuous in the elderly. The effect of valence observed for negative words was more pronounced in the young both in the earlier (N400) and later (LPC) latency ranges. The findings with respect to the old/new effect indicate prioritized processing of aversive stimuli in the young and may correspond to diminished capacity of adaptive behavior in the elderly.