This study investigated whether the apparent completeness of the acoustic speech signal during phonemic restoration derives from a process of auditory induction (Warren, 1984) or segregation, or whether it is an auditory illusion that accompanies the completion of an abstract phonological representation. Specifically,five experiments tested the prediction of the auditory induction (segregation) hypothesis that active perceptual restoration of an [s] noise that has been replaced with an extraneous noise would use up a portion ofthat noise's high-frequency energy and consequently change the perceived pitch (timbre, brightness) of the extraneous noise. Listeners were required to compare the pitch of a target noise, which replaced a fricative noise in a sentence, with that of a probe noise preceding or following the speech. In the first two experiments, a significant tendency was found in favor of the auditory induction hypothesis, although the effect was small and may have been caused by variations in acoustic context. In the following three experiments, a larger variety of stimuli were used and context was controlled more carefully; this yielded negative results. Phoneme identification responses collected in the same experiments, as well as informal observations about the quality of the restored phoneme, suggested that restoration of a fricative phone distinct from the extraneous noise did not occur; rather, the spectrum of the extraneous noise itself influenced phoneme identification. These results suggest that the apparent auditory restoration which accompanies phonemic restoration is illusory, and that the schemaguided process of phoneme restoration does not interact with auditory processing.