Can a shift in interaural phase between a subthreshold signal and an audible contralateral probe tone affect perception of the probe? To obtain an answer, an 800-Hz tone was presented to both ears. The tone was presented continuously to one ear (-25 to + 10 dB SL) and in a sequence of four bursts per trial to the other ear (+ 10 dB SL). Interaural phase was reversed for either the second or the fourth burst in a 2 AFC task. Interaural phase-shift detection threshold (65% correct) varied with the intensity of the continuous signal; across subjects, this threshold varied from -21 to + 1 dB SL. When a 300-or 500-Hz masking tone was added to the ear with the continuous signal, phase-shift detection accuracy depended primarily upon the sensation level of the signal rather than its sound pressure level. These findings demonstrate temporal encoding at signal levels well below hearing threshold.