The relation between the monaural critical band and binaural analysis was examined using an NoSm MLD paradigm, in order to resolve ambiguities about the width of the masking spectrum important for binaural detection. A 500‐Hz pure‐tone signal was presented with a 600‐Hz‐wide band of masking noise to the signal ear. Bands of noise ranging in width from 25 to 600 Hz, or noise notches (imposed on a 600‐Hz‐wide band centered on the signal frequency) ranging in width from 0 to 600 Hz were presented to the nonsignal ear. All noise bands and notches were centered on 500 Hz, the frequency of the signal. The effects of varying bandwidth were radically different from those of varying notchwidth: the MLD changed from zero to approximately 8 dB over a bandwidth range of 400 Hz; for notchwidths, however, the MLD changed 8 dB over a range of only 50 Hz. The results support an interpretation that the fine frequency selectivity of monaural analysis is preserved in peripheral binaural interaction, but that a relatively wide frequency range of critical bands is scanned at a later stage of binaural processing. It was suggested that the wide spectral range of binaural analysis may provide a background against which binaural differences due to the signal are detected.