Thresholds were measured for diotic tonal signals in the presence of interaurally delayed bands of Gaussian noise. When the signal frequency was 525 Hz, the spectrum of the noise was either below (highest frequency, 450 Hz) or above (lowest frequency, 600 Hz) the frequency of the signal. When the signal frequency was 450 Hz, the spectrum of the noise was always above the signal frequency (lowest frequency, 600 Hz). Signals had a 250-ms duration and were temporally centered within the 300-ms long bursts of noise. The spectrum level of the noise was 60 dB. Thresholds obtained in all three conditions varied essentially sinusoidally with the interaural delay of the noise. For signals below the spectrum of the noise, the periodicities within the data were close to, but not identical with, the periodicities of the signals. This outcome is discussed in terms of masking produced by aural distortion products stemming from interactions within the bands of noise [cf. van der Heijden and Kohlrausch, J. Acoust. Soc. Am. 98, 3125–3134 (1995)]. For signals above the spectrum of the noise, the periodicities in the data suggested that masking was produced by components within the band of noise. Patterns within the data are also discussed in terms of limitations concerning the magnitude of external delays that can be matched by internal delays that are incorporated in modern models of binaural processing.