Older adults often show bilateral brain activation, compared to unilateral activation in younger adults, when performing tasks in domains of age-associated cognitive impairment, such as episodic and working memory. Less is known about activation associated with performance in cognitive domains that are typically unaffected by healthy aging. We used event-related functional magnetic resonance imaging to examine age-related patterns in brain activation associated with a form of implicit memory, repetition priming, which is typically preserved in healthy aging. Sixteen younger adults and 15 nondemented older adults performed semantic judgments (abstract/concrete) on single words in a study phase. In a test phase, identical judgments were made for repeated and new words. Younger and older adults showed similar response-time benefits (repetition priming) from repeated semantic classification. Repetition priming was associated with repetition-related reductions of prefrontal activation in both groups, but the patterns of activation differed between groups. Both groups showed similar activation reductions in dorsal left inferior prefrontal cortex (LIPFC), but older adults showed less reduction than younger adults in ventral and anterior LIPFC. Activation reductions were exclusively left-lateralized for younger adults, whereas older adults showed additional reductions in multiple regions of right frontal cortices. Right prefrontal activation reductions in older adults correlated with better repetition priming and better performance on independent tests of semantic processing. Thus, reduced asymmetry of prefrontal activation reductions in healthy aging was related to conceptual repetition priming, a form of learning that is spared in aging, and with the sparing of semantic memory.