It has been argued that novel compared to familiar stimuli are preferentially encoded into memory. Nevertheless, treating novelty as a categorical variable in experimental research is considered simplistic. We highlight the dimensional aspect of novelty and propose an experimental design that manipulates novelty continuously. We created the Graded Novelty Encoding Task (GNET), in which the difference between stimuli (i.e. novelty) is parametrically manipulated, paving the way for quantitative models of novelty processing. We designed an algorithm which generates visual stimuli by placing colored shapes in a grid. During the familiarization phase of the task, we repeatedly presented five pictures to the participants. In a subsequent incidental learning phase, participants were asked to differentiate between the “familiars” and novel images that varied in the degree of difference to the familiarized pictures (i.e. novelty). Finally, participants completed a surprise recognition memory test, where the novel stimuli from the previous phase were interspersed with distractors with similar difference characteristics. We numerically expressed the differences between the stimuli to compute a dimensional indicator of novelty and assessed whether it predicted recognition memory performance. Based on previous studies showing the beneficial effect of novelty on memory formation, we hypothesized that the more novel a given picture was, the better subsequent recognition performance participants would demonstrate. Our hypothesis was confirmed: recognition performance was higher for more novel stimuli. The GNET captures the continuous nature of novelty, and it may be useful in future studies that examine the behavioral and neurocognitive aspects of novelty processing.Supplementary InformationThe online version contains supplementary material available at 10.3758/s13428-022-01891-8.