Schizophrenia and bipolar disorder are characterized by cognitive deficits, which are associated with poor psychosocial outcomes. However, current treatments are largely ineffective in addressing them. Therefore, there is an urgent need to identify new mechanisms underlying cognitive deficits in these disorders, that can be targeted with novel treatments. Sleep supports stabilization and integration of memories. Recent evidence suggests that sleep-dependent memory processing and associated neurobiology is altered in psychotic disorders. To gain insight into these alterations, my laboratory studies sleep related brain oscillations and associated cognitive functions in bipolar disorder, schizophrenia and other psychotic disorders.