The effects of the presence of an amplitude discontinuity in the spectrum of a noise masker on frequency discrimination performance were examined. First, detection thresholds as a function of masker level were obtained for pure-tone signals masked by either simultaneous or forward white and low-pass maskers. Then frequency discrimination thresholds were obtained using four masker levels that were chosen to yield predetermined masked thresholds, with signal levels corresponding to each of three sensation levels above these masked thresholds. The principal results indicate that frequency discrimination is poorer in simultaneous low-pass noise than in simultaneous white noise, and that this difference in performance increases with increasing sensation level and with increasing masker level. These results are inconsistent with an explanation based on the pitches generated at spectral edges ("edge pitch"), pitch shifts, or disruption of phase-locking information, but are generally consistent with an explanation based on lateral suppression. It is proposed that a release from suppression may occur in filtered noise backgrounds at high noise levels and at high sensation levels. The reduced suppression may result in poorer frequency discrimination due, in part, to reduced signal detectability.