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Instructors may motivate students toward success by focusing them on developing knowledge (mastery) or outperforming their peers (performance). We examined how instructing students to adopt mastery or performance goals influenced correction of challenging general knowledge questions that were initially answered incorrectly. We additionally recorded event-related potentials to corrective feedback after each initial failed response. Not only did mastery goals facilitate error correction on both immediate and delayed retests, they appeared to do so through enhanced early orienting to learning feedback, as indexed by the midfrontal P2 component, and greater elaborative encoding, as indexed by sustained midfrontal positivity. Thus, mastery goal instruction appears to be advantageous for rebounding from failure by facilitating both early orienting to and elaboration of learning opportunities.