It has been proposed that the physical substrate of memory resides in alterations of the strengths or weights of modifiable synaptic connections. In recent years, the hypothesis that the mechanisms underlying a particular form of synaptic plasticity, known as long-term potentiation, or LTP, are activated during learning and may actually subserve the formation of associative memories, has gained much empirical support. This paper reviews experimental studies suggesting that changes in synapse physiology and chemistry are involved in the formation of neural associative representation in hippocampal networks during classical conditioning. Recent experiments investigating LTP and learning-induced synaptic changes at hippocampal outputs to the prefrontal cortex are reported. The results provide a working framework within which the dynamics of information storage in hippocampal and prefrontal cortical networks is profiled.