Trauma can profoundly affect memory and cognitive functioning, leading to significant psychological and functional challenges. Traumatic experiences, including physical or sexual abuse, combat exposure, natural disasters, or accidents, may disrupt the brain’s ability to process, store, and retrieve information. Research indicates that trauma can result in alterations of memory processes, such as fragmented or intrusive recollections, flashbacks, and difficulties distinguishing between past and present experiences. In addition, cognitive domains including attention, concentration, executive functioning, and problem-solving are often impaired following trauma exposure. These deficits not only compromise daily functioning but also pose challenges for effective psychological treatment. Understanding the intricate relationship between trauma, memory, and cognition is therefore essential for the development of targeted interventions. By identifying the specific cognitive and memory-related consequences of trauma, mental health professionals can design therapeutic strategies that address these impairments, facilitating recovery and resilience. This review synthesizes current evidence on the impact of trauma on memory and cognitive functioning and emphasizes the importance of trauma-informed therapeutic approaches that integrate cognitive rehabilitation techniques to optimize psychological outcomes.