Sleep plays a crucial role in memory processing as different stages of sleep allow the brain to flush out toxins like the amyloid protein that can accumulate during the day. Additionally, memories are processed during sleep, leading to strengthening of certain memory parts and better integration of recent events with past experiences. This memory processing during sleep can even convert memory into wisdom. Sleep deprivation has a negative impact on memory as it deprives the brain of essential information processing that occurs during sleep.