Dichotic word perception is an essential component in audiological test batteries that are designed to identify auditory processing disorders (APD). Lag‐time is the time difference between onsets of dichotic stimuli. The contribution of lag‐time to perception of dichotic speech is not fully known and there is a lack of data available on children. Studies by Black (1955) and Berlin et al. (1973) found intermittent effects of lag‐time on perception of dichotic speech in adults. This project examined the effects of 3 lag‐times (0, 150, and 300 ms) on perception of NU‐CHCIPS [Elliot and Katz (1980)] words presented dichotically at 50 dB HL through ER‐3A insert phones. The sequence of lag‐times and ear order was balanced. Subjects were six children age 7 to 10 years who had normal hearing and normal findings on standardized APD tests. Lag‐times of 0, 150, and 300 ms yielded mean error rates of 1.3, 1.5, and 1.7 ms, respectively. Mean right ear and left ear error rates were 1.4 and 1.6, respectively. A two‐way ANOVA showed no significant (p>0.05) effect for lag‐time, ear preference, or their interaction. Implications for findings and development of APD treatment materials based on lag‐time data will be presented.