Persons with chronic obstructive pulmonary disease (COPD) suffer psychological stress and decreased mental functioning. Their neuropsychological dysfunction may in large part be caused by hypoxia. Several studies have shown that relief of this hypoxia causes measurable improvement in neuropsychological functioning. Normalization of electroencephalograms has also been demonstrated in COPD patients whose hypoxia is relieved. Nocturnal oxygen desaturation in patients with COPD may be important, irrespective of daytime oxygenation. Long-term oxygen therapy for the treatment of nocturnal desaturation and its effect on brain function need further study. Nocturnal oxygen desaturation may also influence the cognitive dysfunction of the aged patient.