The current study compared the neural correlates of associative retrieval of compound (unitized) stimuli and unrelated (non-unitized) stimuli. Although associative recognition was nearly identical for compounds and unrelated pairs, accurate recognition of these different pair types was associated with activation in distinct regions within the medial temporal lobe (MTL). Recognition of previously presented compound words was associated with left perirhinal activity, whereas recognition of unrelated word pairs was associated with activity in left hippocampus. These results provide evidence that perirhinal cortex mediates familiarity-based associative memory of stimuli unitized at encoding, while the hippocampus is required for recollection-based associative memory.