Natural environments typically contain sound sources other than the source of interest that may interfere with the ability of listeners to extract information about the primary source. Studies of speech intelligibility and localization by normal-hearing listeners in the presence of competing speech are reported on in this work. One, two or three competing sentences [IEEE Trans. Audio Electroacoust. 17(3), 225-246 (1969)] were presented from various locations in the horizontal plane in several spatial configurations relative to a target sentence. Target and competing sentences were spoken by the same male talker and at the same level. All experiments were conducted both in an actual sound field and in a virtual sound field. In the virtual sound field, both binaural and monaural conditions were tested. In the speech intelligibility experiment, there were significant improvements in performance when the target and competing sentences were spatially separated. Performance was similar in the actual sound-field and virtual sound-field binaural listening conditions for speech intelligibility. Although most of these improvements are evident monaurally when using the better ear, binaural listening was necessary for large improvements in some situations. In the localization experiment, target source identification was measured in a seven-alternative absolute identification paradigm with the same competing sentence configurations as for the speech study. Performance in the localization experiment was significantly better in the actual sound-field than in the virtual sound-field binaural listening conditions. Under binaural conditions, localization performance was very good, even in the presence of three competing sentences. Under monaural conditions, performance was much worse. For the localization experiment, there was no significant effect of the number or configuration of the competing sentences tested. For these experiments, the performance in the speech intelligibility experiment was not limited by localization ability.