Creative solutions often involve insight, which refers to a rapid reorganisation of internal representations (representational change - RC) combined with an 'Aha' feeling including positive emotions and certainty about the solution. Although there is evidence that problems eliciting insight are better remembered, the neural mechanisms of this 'insight memory effect' (IME) remain unclear. Given that insight involves sudden RC, positive emotions and certainty, we hypothesised that the IME would be associated with a change in cortical areas representing the solution (RC) and increased activity in the amygdala. While under-going fMRI scanning, participants identified obscure (Mooney) images of real-world objects, whose identification (solution) is often accompanied by insight. Five days later, participants' memory for the real-world objects (solutions) was tested. The study yielded four main findings. First, multivariate pattern analyses showed that when solving Mooney images was accompanied by insight, posterior fusiform gyrus (pFusG) and inferior lateral occipital cortex (iLOC) showed sudden RC. Second, at the time of the solution, the amygdala - a region associated with positive emotions - showed increased activity as a function of insight. Third, insight was also associated with increased functional connectivity between amygdala and the aforementioned visual areas (pFusG and iLOC). Most importantly, these three effects predicted subsequent memory (i.e., the IME). This is the first study providing direct empirical evidence of sudden RC during insight problem-solving and how this reorganisation together with the amygdala enhances long-term memory formation. These findings highlight the importance of fostering self-motivated and insightful problem-solving in educational environments to promote better learning outcomes.