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Understanding the brain's proactive nature and its ability to anticipate the future has been a longstanding pursuit in philosophy and scientific research. The predictive processing framework explains how the brain generates predictions based on environmental regularities and adapts to both predicted and unpredicted events. Prediction errors (PE) occur when sensory evidence deviates from predictions, triggering cognitive and neural processes that enhance learning and subsequent memory. However, the effects of PE on episodic memory have not been clearly explained. This dissertation aims to address three key questions to advance our understanding of PE and episodic memory. First, how does the degree of PE influence episodic memory, and how do expected and unexpected events interact in this process? Second, what insights can be gained from studying the electrophysiological activity associated with prediction violations, and what role does PE play in subsequent memory benefits? Lastly, how do memory processes change across the lifespan, and how does this impact the brain's ability to remember events? By answering these questions, this dissertation contributes to advancing our understanding of the cognitive and neural mechanisms underlying the relationship PE and episodic memory.