Progress in the study of emotion and emotion regulation has increasingly been informed by neuroscientific methods. This article focuses on two components of the event-related potential (ERP)--the P300 and the late positive potential (LPP)--and how they can be used to understand the interaction between the more automatic and controlled processing of emotional stimuli. Research is reviewed exploring: the dynamics of emotional response as indexed at early and late latencies; neurobiological correlates of emotional response; individual and developmental differences; ways in which the LPP can be utilized as a measure of emotion regulation. Future directions for the application of ERP/electroencephalogram (EEG) in achieving a more complete understanding of emotional processing and its regulation are presented.