This study compared the ability of 5 listeners with normal hearing and 12 listeners with moderate to moderately severe sensorineural hearing loss to discriminate complementary two-component complex tones (TCCTs). The TCCTs consist of two pure tone components (f1 and f2) which differ in frequency by delta f (Hz) and in level by delta L (dB). In one of the complementary tones, the level of the component f1 is greater than the level of component f2 by the increment delta L; in the other tone, the level of component f2 exceeds that of component f1 by delta L. Five stimulus conditions were included in this study: fc = 1000 Hz, delta L = 3 dB; fc = 1000 Hz, delta L = 1 dB; fc = 2000 Hz, delta L = 3 dB; fc = 2000 Hz, delta L = 1 dB; and fc = 4000 Hz, delta L = 3 dB. In listeners with normal hearing, discrimination of complementary TCCTs (with a fixed delta L and a variable delta f) is described by an inverted U-shaped psychometric function in which discrimination improves as delta f increases, is (nearly) perfect for a range of delta f's, and then decreases again as delta f increases. In contrast, group psychometric functions for listeners with hearing loss are shifted to the right such that above chance performance occurs at larger values of delta f than in listeners with normal hearing. Group psychometric functions for listeners with hearing loss do not show a decrease in performance at the largest values of delta f included in this study. Decreased TCCT discrimination is evident when listeners with hearing loss are compared to listeners with normal hearing at both equal SPLs and at equal sensation levels. In both groups of listeners, TCCT discrimination is significantly worse at high center frequencies. Results from normal-hearing listeners are generally consistent with a temporal model of TCCT discrimination. Listeners with hearing loss may have deficits in using phase locking in the TCCT discrimination task and so may rely more on place cues in TCCT discrimination.