This study examined auditory processing in 2-month-old infants at genetic risk for dyslexia and in controls. Manipulated natural speech stimuli (/bAk/ and /dAk/), at either side of the phoneme boundary, were presented to these infants and their automatic cortical deviance responses were recorded. Control infants showed two distinct mismatch responses, thus extending similar findings reported with kindergartners in terms of topographical distribution and cortical sources. The absence of such mismatch responses in the infants at risk supports the hypothesis of basic auditory (temporal) processing impairments in the disorder. The results suggest that these early signs of deficient auditory processing may point to problematic categorical perception at a later age.