Daily function depends on an ability to mentally map our environment. Environmental factors such as visibility and layout, and internal factors such as psychological stress, can challenge spatial memory and efficient navigation. Importantly, people vary dramatically in their ability to navigate flexibly and overcome such challenges. In this paper, we present an overview of “schema theory” and our view of its relevance to navigational memory research. We review several studies from our group and others, that integrate manipulations of environmental complexity (...) and affective state in order to gain a richer understanding of the mechanisms that underlie individual differences in navigational memory. Our most recent data explicitly link such individual differences to ideas rooted in schema theory, and we discuss the potential for this work to advance our understanding of cognitive decline with aging. The data from this body of work highlight the powerful impacts of individual cognitive traits and affective states on the way people take advantage of environmental features and adopt navigational strategies. (shrink)