Recordings of nonsense syllables (VCV construction) were presented to groups of children aged 5, 7, 9, 11, and 13 years and young adults under monaural (reverberation time=0.6 s) and binaural (reverberation times=0, 0.4, and 0.6 s) conditions of reverberation. Phoneme identification performance was affected by age, reverberation, and mode of presentation (monaural versus binaural). The major findings were (1) phoneme identification scores in reverberant conditions improved with increasing age and decreased with increased reverberation time; (2) children’s performance in reverberant conditions did not reach asymptote until age 13; (3) binaural performance was consistently better than monaural performance for all age groups, with 5‐year‐olds showing the largest binaural advantage.