The role of the hippocampus and adjacent medial temporal lobe structures in memory systems has long been debated. Here we show in humans that these neural structures are important for encoding implicit contextual information from the environment. We used a contextual cuing task in which repeated visual context facilitates visual search for embedded target objects. An important feature of our task is that memory traces for contextual information were not accessible to conscious awareness, and hence could be classified as implicit. Amnesic patients with medial temporal system damage showed normal implicit perceptual/skill learning but were impaired on implicit contextual learning. Our results demonstrate that the human medial temporal memory system is important for learning contextual information, which requires the binding of multiple cues.