We present a neural recording and spectral analysis integrated microsystem. It is the instrumentational and computational core of an envisioned miniature implantable brain implant for automated epileptic seizure therapy. The microsystem combines two functional blocks: the neural recording interface and the spectral analysis processor. The neural interface contains 256 signal acquisition channels recording neural field potentials from an array of 16 times 16 electrodes simultaneously, in a distributed fashion. The spectral analysis processor computes a wavelet-based time-frequency map (spectrogram) of the neural recording. We demonstrate the functionality of the integrated microsystem in real-time epileptic seizure monitoring and spectral analysis, as necessary for subsequent automated seizure prediction and prevention