It is controversial whether mood affects cognition by triggering specific processing strategies or by limiting processing resources. The current event-related potential (ERP) study pursued this issue by examining how mood modulates the processing of task relevant/irrelevant information. In question-answer pairs, a question context marked a critical word in the answer sentence as focus (and thus relevant) or non-focus (thereby irrelevant). At the same time, participants were exposed to either a pleasant or unpleasant odor to elicit different mood states. Overall, we observed larger N400s when the critical words in the answer sentences were semantically incongruent (rather than congruent) with the question context. However, such N400 effect was only found for focused words accompanied by a pleasant odor and for both focused and non-focused words accompanied by an unpleasant odor, but not for non-focused words accompanied by a pleasant odor. These results indicate top-down attentional shift to the focused information in a positive mood state and non-selective attention allocated to the focused and non-focused information in a less positive mood state, lending support to the "processing strategy" hypothesis. By using a novel approach to induce mood states, our study provides fresh insights into the mechanisms underlying mood modulation of language comprehension.