Emotional experiences are temporally dynamic, but prior work suggests that temporal features are usually neglected in remembered emotion. For instance, retrospective emotion evaluations are often biased by discrete salient timepoints, such as the peak and end moments, at the expense of objective event duration (i.e., peak-end effects and duration neglect). However, how these retrospective emotion biases originate, as well as their significance for emotional functioning, remain unclear. Here, we test the hypothesis that retrospective emotion biases are related to fundamental limits of temporal processing and memory capacity. Further, we examine whether these limits have implications for emotional functioning. Participants (n = 60) underwent a novel paradigm comprising affectively-rich movie sequences while providing emotion ratings continuously (moment-by-moment) and retrospectively. Temporal memory for previously watched emotional movie sequences and dispositional negativity were measured. Our findings revealed a greater "end" bias as the duration of emotional-movie sequences increased, suggesting that limitations in temporal processing capacity may contribute to retrospective emotion biases. Critically, temporal-memory errors were associated with larger retrospective emotion biases and with individual differences in dispositional negativity. Collectively, these results indicate that retrospective emotion biases may stem partly from mnemonic temporal errors that are emotionally maladaptive. (PsycInfo Database Record (c) 2024 APA, all rights reserved).