To what extent do more creative people process emotional information differently than less creative people? This study examined the role of emotion processing in creativity and its implications for the creativity-psychopathology association. A total of 117 participants performed a memory recognition task for negative, positive, and neutral words; they also completed measures of emotion processing, creative achievement, and divergent thinking. Self-reported high creative achievement levels and better performance on divergent thinking tasks were associated with greater perceptual sensitivity for positive words and a more liberal response bias for negative words. Furthermore, mediational analyses revealed a relationship between creativity, emotional repair, and response bias for negative stimuli, whereby a low ability to repair negative emotions served as a mediator between creativity and response bias, with response bias predicting creativity. The significance of these findings is discussed in the context of psychopathology and its possible connection to creativity.