Reading-impaired and control children were given an experimental battery of nonverbal auditory perceptual tests which examined discrimination and temporal order perception. Stimulus tones were presented at various rates. There were no significant differences between groups on tests in which stimuli were presented at slow rates. However, when the same stimuli were presented more rapidly, the reading-impaired group made significantly more errors than the controls. The reading-impaired children's ability to use phonics skills (nonsense word reading) was also examined. There was a high correlation between the number of errors made on the phonics reading test and the number of errors made in responding to the rapidly presented stimuli in the auditory perceptual tests. The hypothesis that some reading impairments are related to low-level auditory perceptual dysfunction that affects the ability to learn to use phonics skills adequately is discussed.