The frontal lobe, in particular the prefrontal cortex , involved in conscious thought and higher mental functions such as decision-making and plays an important part in processing short-term memories.
Information is transferred from short-term memory to long-term memory through the hippocampus which is located in the inner fold of the temporal lobe.
Scientists have discovered that the storage and retrieval of memory actually involve activation of the same neurons located in the hippocampus (Gelbard-Sagiv et al., 2008).