Hippocampal place cells are the functional units of spatial navigation and are present in all subregions- CA1, CA2, CA3 and CA4. Recent studies on CA2 have indicated its role in social and contextual memory, but its contribution towards spatial novelty detection and consolidation remains largely unknown. The current study aims to uncover how CA1 and CA2 detect, process, assimilate and consolidate spatial novelty. Accordingly, a novel 3-day paradigm was designed where the animal was introduced to a completely new environment on the first day and to varying degrees of familiarity and novelty on subsequent days, as the track was extended in length and modified in shape, keeping other environmental constraints fixed. Detection of spatial novelty was found to be a dynamic and complex phenomenon, characterized by different responses from hippocampal place cells, depending on when novelty was introduced. Therefore, the study concludes that early novelty detection (the first time a novel space is introduced in a relatively familiar environment) and subsequent novelty detection are not processed in the same way. Additionally, while neuronal responses to spatial novelty detection (early and subsequent) were found to be the same in CA1 and CA2 ensembles, their responses differed in spatial consolidation mechanisms during subsequent sleep replays. For CA1, spatial coverage of prior behaviour was found to be closely reflected in subsequent sleep for that particular day, but CA2 showed no such coherent response, highlighting mnemonic processing differences between CA2 and CA1 with respect to spatial novelty.