There is a wealth of behavioral and physiological evidence that supports a relationship between sleep and memory showing that obtaining sleep actively facilitates the ability to encode new information as well as consolidate and transform material that is newly learned. Sleep, a complex assemblage of electrochemical and physiological brain states, supports the formation and stabilization of many different types of information. In this chapter, we discuss the role of sleep, nocturnal and daytime, in procedural and declarative memory formation, but we focus primarily on neutral and emotionally salient episodic memories. We finish with an extensive consideration of how sleep participates in selectively consolidating salient information and contributes to reorganizing memories to transform them into information that is more flexible for future use.