ABSTRACT Prior work has shown Americans have higher levels of memory specificity than East Asians. Neuroimaging studies have not investigated mechanisms that account for cultural differences at retrieval. In this study, we use fMRI to assess whether mnemonic discrimination, distinguishing novel from previously encountered stimuli, accounts for cultural differences in memory. Fifty-five American and 55 Taiwanese young adults completed an object recognition paradigm testing discrimination of old targets, similar lures and novel foils. Mnemonic discrimination was tested by comparing discrimination of similar lures from studied targets, and results showed the relationship between activity in right fusiform gyrus and behavioural discrimination between target and lure objects differed across cultural groups. Parametric modulation analyses of activity during lure correct rejections also indicated that groups differed in left superior parietal cortex response to variations in lure similarity. Additional analyses of old vs. new activity indicated that Americans and Taiwanese differ in the neural activity supporting general object recognition in the hippocampus, left inferior frontal gyrus and middle frontal gyrus. Results are juxtaposed against comparisons of the regions activated in common across the two cultures. Overall, Americans and Taiwanese differ in the extent to which they recruit visual processing and attention modulating brain regions.