Though much is known about how words are recognized, little research has focused on how a degraded signal affects the fine-grained temporal aspects of real-time word recognition. The perception of degraded speech was examined in two populations with the goal of describing the time course of word recognition and lexical competition. Thirty-three postlingually-deafened cochlear implant (CI) users and 57 normal hearing (NH) adults (16 in a CI-simulation condition) participated in a visual world paradigm eye-tracking task in which their fixations to a set of phonologically related items were monitored as they heard one item being named. Each degraded-speech group was compared to a set of age-matched NH participants listening to unfiltered speech. CI users and the simulation group showed a delay in activation relative to the NH listeners, and there is weak evidence that the CI users showed differences in the degree of peak and late competitor activation. In general, though, the degraded-speech groups behaved statistically similarly with respect to activation levels.