The picture‐word interference paradigm is often used to investigate the processes underlying word production. In this paradigm, participants name pictures while ignoring distractor words. The aim of this study is to investigate the processes underlying this task and how/when they differ from those involved in simple picture naming. It examines the electrophysiological signature of general interference (longer response times with than without distractors) and facilitation (shorter response times for distractor‐word stimuli overlapping in phonemes/orthography) effects. Mass univariate analyses are used to determine the temporal boundaries and spatial distribution of these effects without a priori restrictions in the time/space dimensions. Topographic pattern analyses complement this information by indicating whether (and when) the neural networks differ across conditions. Results suggest that the general interference effect has two loci, the grammatical encoding and the phonological encoding of the target word, with different neural networks involved in the two tasks during part of the grammatical encoding process. Furthermore, the electrophysiological signature of interference and facilitation effects in the time window of phonological encoding is highly similar, suggesting that the two effects could result from the same underlying mechanism. These findings are discussed in the light of existing accounts of interference and facilitation effects.