Abstract: The inner mechanism of temporal information processing in text reading is explored by using ERP technology in two experiments. In experiment 1, the reasons why temporal shifts can increase processing time of the critical sentence is tested with the index, N400 component of time words and anaphors. To eliminate the effects of processing of time words and further the Two Phrases Model is tested; the noun-phrase (NP) anaphors are changed from the beginning position of the sentence to the end without changing the sentences meaning in experiment 2. The results show that both the processing of time words and accessing information that is presented prior to the temporal shift could contribute the reading times of the critical sentence. Processing the time words and updating the situation model is the first phrase of temporal information processing, and accessing information that is presented prior to the temporal shift and the integration of the information are the second phrases of temporal information processing. In general, this study further supports the Two Phase Model and has given the neurophysiologic evidence.