We have again measured interaural time discrimination performance for 55‐dB‐SPL 500‐Hz tonal targets in the presence of tonal maskers of various frequencies and intensities, with interaural phase angles of 0 and 180 deg. For some masker frequencies we also added a 0–200‐Hz noise masker to prevent subjects from using the locations of low‐frequency combination tones as perceptual cues. In general, we found that higher‐intensity tonal masker at frequencies near that of the target degrade discrimination performance for the targets, and that performance is worse when the target and masker are presented with different interaural phase angles. This dependence of discrimination on the interaural masker phase is more consistent with data obtained in broadband maskers than we had previously reported, and is observed both when target and masker images are perceived separately, and when they are heard as a single fused image. The perceptual cues to perform the task depend on the frequency and intensity of the masker. We will also discuss ways in which these data maybe accounted for in terms of common models of binaural interaction. [Supported by NIH.]