Research has shown that emotional events are remembered better than neutral events, but might also elicit an increase in false memories. The present study was designed to disentangle the influences of valence and arousal on event memory in the misinformation paradigm. Participants were shown six types of photographs (positive with high/low arousal, negative with high/low arousal, ambiguous, neutral), after which half of them were exposed to misleading information. A recognition test assessed memory for both correct and false central and peripheral details. Negative and ambiguous events elicited fewer correct and more false memories for peripheral details than positive and neutral events, regardless of previous exposure to misinformation. Arousal improved memory for correct central details, and both negative valence and arousal inhibited control participants’ tendency to endorse false central details. The power of emotion was overruled by the power of suggestion, however, as the latter effect disappeared with previous exposure to misinformation. Results are discussed in the light of earlier research on emotion and cognition, recent motivational theories and implications for forensic practice.