Event-related potentials (ERPs) provide a critical link between the hemodynamic response, as measured by functional magnetic resonance imaging, and the dynamics of the underlying neuronal activity. Single-trial ERP recordings capture the oscillatory activity that are hypothesized to underlie both communication between brain regions and amplified processing of behaviorally relevant stimuli. However, precise interpretations of ERPs are precluded by uncertainty about their neural mechanisms. One influential theory holds that averaged sensory ERPs are generated by partial phase resetting of ongoing electroencephalographic oscillations, while another states that ERPs result from stimulus-evoked neural responses. We formulated critical predictions of each theory and tested these using direct, intracortical analyses of neural activity in monkeys. Our findings support a predominant role for stimulus-evoked activity in sensory ERP generation, and they outline both logic and methodology necessary for differentiating evoked and phase resetting contributions to cognitive and motor ERPs in future studies.