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Cranford, Boose, & Moore (1990a) reported that many elderly persons exhibit problems in perceiving the apparent location of fused auditory images in a sound localization task involving the Precedence Effect (PE). In the earlier study, differences in peripheral hearing sensitivity between young and elderly subjects were not controlled. In the present study, four groups of young and elderly subjects, matched with respect to age and the presence or absence of sensorineural hearing loss, were examined to determine the effects of these two factors on performance with the PE task. Although significantly poorer performances on the PE task were found to be associated with both increased age and hearing loss, additional tentative evidence was obtained that the presence of hearing loss may have a relatively greater detrimental effect on the performance of at least some elderly subjects than it does on younger persons.