This study examined states of awareness with the Remember/Know paradigm during verbal recognition memory in young and old adults. Following the presentation of a word list, subjects undertook a recognition test and indicated whether they could consciously recollect its prior occurrence (R) or recognize it on some other basis, without conscious recollection (K). In this individual-difference approach we also incorporated various processing-speed and working-memory measures to study the link between aging, states of awareness and processing resources. The results revealed that, compared to younger adults, older adults exhibited a decline in the amount of R responses during the recognition test whereas the amount of K responses did not change. Structural equation modeling indicated that a slower processing speed associated with a limited working-memory capacity is a key to explaining age-related variance in conscious recollection. The findings offer further support for the distinction between remembering and knowing and for the processing-resources hypothesis of aging. (C) 2002 Elsevier Science B.V. All rights reserved.