Bottom-up and top-down processing are psycholinguistic processes used in speech recognition. Bottom-up processing relies solely on the acoustic signal, while top-down processing uses contextual information from the communication situation or sentence to aid understanding. An experiment found that participants understood words better when presented in sentences compared to in isolation, demonstrating the importance of top-down processing through context. Bottom-up processing decodes precise acoustic information, while top-down processing allows selection from possibilities by using context to clarify ambiguous acoustic signals.