Dichotic CV recognition at interaural temporal onset asynchronies (lag times) of 0, 30, 60, and 90 ms was investigated in normal hearing young and elderly subjects. The results for the young group were consistent with those reported in previous studies (Studdert‐Kennedyetal., 1970; Berlinetal., 1973a). The older group demonstrated a mean right ear advantage (REA) at simultaneity of 12.7%, which was not significantly different from that of the young group (12.4%). This suggests that the processes subserving the REA are not affected by age. However, there was a significant reduction in the total (right ear plus left ear) dichotic scores of the elderly group compared to the young; suggesting an age‐associated reduction in the channel capacity of the aging auditory system. Further, there were striking aberrations of the dichotic lag effect in the elderly group compared to the young subjects, consistent with age‐related changes in auditory temporal processing. The findings are discussed with respect to the aging auditory system and the nature of dichotic speech processing.