Two experiments were conducted to determine if the right hemisphere (RH) plays a central role in understanding sarcasm. In Experiment 1, 48 participants completed a target detection task using dichotically presented phrases that were sincere (message compatible), sarcastic (conflicting semantic and prosodic message), or neutral (no emotional prosody). Sarcastic phrases presented to the left ear (LE)/RH produced faster response times than sarcastic phrases presented to the right ear/left hemisphere. Accuracy results indicated an overall LE/RH advantage for detecting both sarcastic and sincere phrases. Experiment 2 utilized the same task with the addition of event-related potential recording. There was a reliable N400 seen in response to the sarcastic phrases, but only with LE/RH presentation. These results suggest that the RH is particularly sensitive to the mismatch between semantic and prosodic information characterized by sarcasm.