The hippocampal complex and neocortex are both integrally important in memory function, in particular as regards memory for episodes and knowledge about the world that is derived from them. It is traditionally assumed that the role of the hippocampus is time-limited, after which retrieval of episodic memory depends only upon neocortical stores. A number of lines of evidence indicate that this traditional view is incorrect. We propose that the hippocampal complex is always necessary for retrieval of episodes and their contextual frame, and that hippocampal-neocortical interactions contribute instead to the extraction of semantic information to be stored in the neocortex.