This study evaluated the role of temporal fine structure in the lateralization and understanding of speech in six normal-hearing listeners. Interaural time differences (ITDs) were introduced to invoke lateralization. Speech reception thresholds (SRTs) were evaluated in backgrounds of two-talker babble and speech-shaped noise. Two-syllable words with ITDs of 0 and 700 ms were used as targets. A vocoder technique, which systematically randomized fine structure, was used to evaluate the effects of fine structure on these tasks. Randomization of temporal fine structure was found to significantly reduce the ability of normal-hearing listeners to lateralize words, although for many listeners, good lateralization performance was achieved with as much as 80% fine-structure randomization. Most listeners demonstrated some rudimentary ability to lateralize with 100% fine-structure randomization. When ITDs were 0 ms, randomization of fine structure had a much greater effect on SRT in two-talker babble than in speech-shaped noise. Binaural advantages were also observed. In steady noise, the difference in SRT between words with 0-vs 700-ms ITDs was, on average, 6 dB with no fine-structure randomization and 2 dB with 100% fine-structure randomization. In two-talker babble this difference was 1.9 dB and, for most listeners, showed little effect of the degree of finestructure randomization. These results suggest that (1) improved delivery of temporal fine structure would improve speech understanding in noise for implant recipients, (2) bilateral implant recipients might benefit from temporal envelope ITDs, and (3) improved delivery of temporal information could improve binaural benefits.