To date there are no studies that have investigated the effects of single microphone noise reduction on perception of speech in children with hearing loss. It is possible that spectral subtraction may have a detrimental effect on speech perception. The present study provides such data for 16 children (5–10 years) with mild-to-moderately severe sensorineural hearing loss. Test stimuli were nonsense syllables, words, and sentences presented at 0, 5, and 10 dB SNR. The main effect for noise reduction was not significant, suggesting that, as with adults, noise reduction does not have a negative effect on the perception of speech.