This study explored the effects of different attentional states on correct rejection of lures (CRL) by studying event-related potentials. Healthy college students were recruited to complete a study-test task. Results showed that CRL processing was regulated by participants' attentional states. Under focused attention, CRL was confirmed using subsequent diagnostic monitoring. Under distracted attention, lures were identified using early-familiarity processing; in addition, subsequent processes of CRL under distracted attention might reflect subjects' confidence in making rejection judgments. Time-frequency results indicated that a top-down inhibition process from the frontal cortex to the hippocampus supported by theta oscillation might play an important role in CRL. These findings provide new inspiration and directions for future research on CRL neural mechanisms. Copyright (C) 2019 Wolters Kluwer Health, Inc. All rights reserved.