Compounds found in a glass of bubbly can stimulate signals in the parts of the brain that control memory and learning, the study found.
Researchers at the University of Reading say our ability to remember routes or events are known to deplete with age, which could lead to poor memory in old age or even dementia.
But Champagne slows these loses and could help to prevent the decline of cognitive skills that occur when the brain gets old.
The drink was shown to improve spatial memory in particular, which is responsible for recording information about surroundings and can help with navigation.
Professor Jeremy Spencer, Department of Food and Nutritional Sciences, said: "These exciting results illustrate for the first time that the moderate consumption of champagne has the potential to influence cognitive functioning, such as memory.
"Such observations have previously been reported with red wine, through the actions of flavonoids contained within it.
"However, our research shows that champagne, which lacks flavonoids, is also capable of influencing brain function through the actions of smaller phenolic compounds, previously thought to lack biological activity.
"We encourage a responsible approach to alcohol consumption, and our results suggest that a very low intake of one to two glasses a week can be effective."
Champagne has relatively high levels of phenolics compared to white wine, deriving predominantly from the two red grapes used to make it, Pinot Noir and Pinot Meunier.