This chapter explores how and why emotional states influence the way individuals perceive, remember, evaluate, and make decisions. It introduces the models of how emotions are represented in the authors cognitive system. The chapter describes and compares two general classes of models of how emotion knowledge is stored and structured in our cognitive system: the associative network models of emotion and the embodied simulation models. It shows how and when these models account for emotion-cognition interactions. In addition to enhanced memory for emotional events, there are two other ways in which emotions influence memory. The two ways are mood-congruent memory and mood-state–dependent memory. J. S. Lerner and D. Keltner proposed an appraisal tendency framework in which they apply the appraisal theories of emotions to explain the effects of specific emotions on judgment and decision making. According to this framework, the appraisals associated with different discrete emotions lead to predictable effects on evaluation of the current state of the situation.