The ability to detect amplitude modulation (AM) of a tonal probe can be disrupted by the presence of modulated masking tones. Two experiments examined whether a disparity in the interaural parameters of the probe and masker can reduce the amount of interference. In the first experiment, the effects of interaural time and intensity differences were studied in separate sets of conditions. With low-frequency carriers, the detection of 10-Hz probe modulation in the presence of 10-Hz masker modulation was not significantly affected by interaural time differences. With higher-frequency carriers, dichotic stimuli were generated through combinations of diotic, dichotic, or monotic probe and masker presentations in which the probe and masker did not share a common interaural intensity difference. In these conditions, the amount of interference was affected by the interaural configuration. However, monotic level differences between the probe and masker may have contributed to the effect of interaural configuration. In the second experiment, the probe and masker were presented through separate speakers in an enclosed listening environment. Spatial separation between the sources for the probe and masker led to a small reduction in the amount of interference. When the masker modulation rate was varied with the probe AM rate fixed at 10 Hz, the extent of tuning in the modulation domain in the sound-field conditions was similar to that obtained with diotic stimulus presentation over headphones.