Background The formation of new phonological representations is key to establishing items in the mental lexicon. Phonological forms become more stable with repetition, time and sleep. This study measured changes in ERP responses to novel and known words within and between two sessions 24 hours apart. We hypothesised that modulation of the auditory N400 would mark changes in lexical processing in children with and without communication difficulties, as novel forms were encoded and consolidated.Method Children listened passively to known and novel words on two consecutive days, while ERPs were recorded using dry electrodes. Data were analysed from 20 typically developing children, 18 children with an autism spectrum disorder (ASD) and 13 children with developmental language disorder (DLD). Results We saw reduced activity overall in our DLD group, reflecting activation in a sparse lexical network, and reduced activity across groups on the second day indicating lexical pre-activation. The DLD group showed the smallest inter-day difference, perhaps signalling reduced overnight maintenance of task-based knowledge. Finally, an effect of lexicality (increased amplitude response to nonwords relative to words) was seen only in the ASD group.Conclusion Data support the dynamic nature of the lexical system, in which neural responses to words and nonwords cause lasting effects on brains' ability to predict incoming stimuli over a 24-hour period, but with these dynamics varying in children with neurodevelopmental disorders.