Some words have fewer direct associates than others, and, when words varying in set size are studied in a list-learning task, those with smaller sets are more likely to be recalled. This set-size effect is found in cued recall when the words are studied in the absence of related words, but not when studied in the presence of related words. Related words provide context and theoretically inhibit irrelevant associates. The present research determined that set-size effects are found when words are encoded in sentence contexts. In contrast to list-learning experiments, the results of three experiments found such effects even when lexically related words were present in the sentences. Other findings indicated that target-set-size effects were determined by the proximity of related words in the sentence and the nature of the test cue. The results are discussed in relation to a model for explaining set-size effects and to selective findings from the sentence-comprehension literature.