The advanced developments in research on spatial and binaural auditory perception, were described. The research on sound localization revealed one important development of virtual acoustic space (VAS) as a research tool. Sound sources in VAS can be repositioned in other acoustic environments. The second research area included sound segregation, which exhibited that listeners are able to selectively attend to the signal in one ear while ignoring any interfering signal that might occur in the opposite ear. Regardless of the role that perceived spatial location plays in speech perception, it becomes clear that uncertainty about the spatial location of a target word can have a profound impact on performance in multitalker listening tasks.