Prior studies found that participants overestimated both negative and positive emotional stimuli, compared with neutral emotion. This phenomenon can be explained by the “arousal mechanism.” Participants demonstrated individual differences in emotion perception. In other words, high emotional awareness resulted in high emotional arousal, and vice versa. This study extended existing findings by exploring the influence of emotional awareness on time perception in a temporal generalization task, while recording electroencephalographic (EEG) signals. The findings revealed that in the positive emotion condition, the high emotional awareness group made more overestimations, compared with the low emotional awareness group. However, no difference was observed in the neutral or negative emotion conditions. Moreover, the event-related potential (ERP) results showed that in the positive emotion condition, the high awareness group elicited larger vertex positive potential (VPP) amplitudes, compared with that of the low awareness group. However, no such differences were observed in the neutral and negative emotion conditions. Moreover, the contingent negative variation (CNV) (200–300, 300–490 ms) component showed that in the positive emotion, the amplitudes of the high awareness group were larger than that of the low awareness group; however, they did not show differences in the neutral condition. The findings of this study suggest that high emotional awareness produces higher physiological arousal; moreover, when participants were required to estimate the time duration of emotional pictures, they tended to make higher time overestimation. Thus, our results support the relationship between emotional awareness and time perception.