Three experiments are reported that investigate the cognitive processes underlying contextual and isolated word reading. In Phase 1, undergraduate participants were exposed to 75 target words under three conditions. The participants generated 25 words from definitions, read 25 words in context and read 25 in isolation. In Phase 2, volunteers completed either an explicit recall task (Experiment 1), an implicit word stem completion task (Experiment 2) or both tasks (Experiment 3). Our findings provide converging evidence that contextual and isolated word reading elicit different patterns of cognitive processing. Specifically, Experiments 1-3 demonstrated that words read in context were remembered similarly to words generated from definitions: words from both conditions were recalled more frequently in the surprise memory task and selected less often to complete the word stems in the implicit memory task. The opposite pattern was noted for words read in isolation. Reading in context is discussed in terms of its greater reliance on semantic processing, whereas isolated word reading is discussed in relation to perceptually driven processes. (Contains 3 notes and 3 tables.)