Children with reading impairments have deficits in phonological awareness, phonemic categorization, speech-in-noise perception, and psychophysical tasks such as frequency and temporal discrimination. Many of these children also exhibit abnormal encoding of speech stimuli in the auditory brainstem, even though responses to click stimuli are normal. In typically developing children the auditory brainstem response reflects acoustic differences between contrastive stop consonants. The current study investigated whether this subcortical differentiation of stop consonants was related to reading ability and speech-in-noise performance. Across a group of children with a wide range of reading ability, the subcortical differentiation of 3 speech stimuli ([ba], [da], [ga]) was found to be correlated with phonological awareness, reading, and speech-in-noise perception, with better performers exhibiting greater differences among responses to the 3 syllables. When subjects were categorized into terciles based on phonological awareness and speech-in-noise performance, the top-performing third in each grouping had greater subcortical differentiation than the bottom third. These results are consistent with the view that the neural processes underlying phonological awareness and speech-in-noise perception depend on reciprocal interactions between cognitive and perceptual processes.brainstem ͉ dyslexia ͉ electrophysiology ͉ experience-dependent plasticity ͉ learning impairment L earning impairments, primarily reading disorders, are among the most prevalently diagnosed exceptionalities in school-aged children, affecting Ϸ 5% to 7% of the population (1). These impairments coincide with a number of perceptual deficits including inordinate difficulty perceiving speech in noise as well as neural encoding deficits in the auditory system. In typically developing children, differences in contrastive speech stimuli are encoded subcortically (2), but the possible relationship between subcortical encoding of stimulus differences and reading ability has not been previously explored.Behavioral Impairments. Children with reading impairments often show deficits in phonological processing, which may be caused by degraded phonological representations or an inability to access these representations effectively (3)(4)(5). This population also exhibits impairments in speech sound discrimination (i.e., contrastive syllables) relative to controls matched for age and reading level (6, 7), suggesting that impairments are not simply caused by a maturational delay. These effects are especially prevalent for place of articulation and voice onset time contrasts, which reflect dynamic spectral and temporal contrasts, respectively. Perceptual discrimination deficits seem to be limited to the rapid spectral transitions between consonants and vowels and are not found for steady-state vowels or when formant transitions are lengthened (8-10). Moreover, when presented with between-and within-phonemic category judgments, typically developing children successfully di...