It is well established that sleep benefits memory. More specifically, and less well tested, theories of sleep and memory (e.g., active systems consolidation theory) predict a particular benefit of (slow wave) sleep to source memory over other non-hippocampal forms of memory. In recent studies with younger adults, we showed that sleep indeed particularly benefitted source memory, more so than item memory (Berres et al., 2024). Using the same design, we randomly assigned 58 older adults (aged 60 – 86 years) to study object pictures in left versus right screen locations either in the morning (7-10am; wake group) or in the evening (7-10pm; sleep group). A test for both item (pictures) and source (location) memory followed 12 hours later (i.e., wake group: same day evening; sleep group: next morning). Multinomial model-based analyses showed that both item and, especially, source memory were significantly improved in the sleep group, with comparable sleep benefits as observed in younger adults. Additionally, older adults in the sleep group wore FitBit™ wristbands for sleep tracking and based on an extended sample of N = 67 in this group we estimated correlations in a Bayesian-hierarchical multinomial analysis. Contrary to expectations, time spent in slow wave sleep did not predict source memory the next morning, but time spent in slow wave sleep embedded in sleep cycles positively predicted source memory. Further, time spent awake after sleep onset, which should disrupt hippocampal replay, negatively predicted source memory the next morning.