Four experiments were conducted in order to examine the influence of elaborative processing at encoding on recognition memory conjunction lure errors. In these experiments, participants generated cues for compound words as wholes (e.g., haywire) or as separate entities (e.g., hay, wire). Studied words were re-presented in exact form (old) or recombined to form conjunction lures on the recognition test. Participants were asked to make old-new judgments and to indicate whether they had rejected items judged to be new because of recall of a studied item or because of lack of familiarity with an item. The results suggested that recall-to-reject processing and conjunction lure familiarity increased with both types of generation, although generation of cues for compound words as a whole did not influence conjunction lure error rates. An emphasis on processing each constituent of a compound word during encoding increased the familiarity of those constituents more than generation of a compound word as a whole, resulting in an increase in conjunction lure errors. These results suggest that both familiarity and recollection-based monitoring processes influence conjunction lure errors, and therefore support dual-process theories of recognition memory.