A gross, slow potential that is differentially sensitive to the frequency of a tone burst was recorded from the region of the auditory nerve in the hamster. An experimental paradigm similar to that employed in psychological studies of tonal masking was used to measure neural‐response amplitude change in the presence of a second tone. The influence of one tone upon the other, as evidenced by the neural response, yielded functions similar to the masking curves generated by human listeners. Increases in the level of the signal required increases in the level of the masker in order to maintain the masking criterion. High‐tone maskers were seen to be less effective than low‐tone maskers. Masking was viewed as a preempting of neural activity by the secondary tone.