A conventional measure to determine the ability to understand speech in noisy backgrounds is the so-called speech reception threshold (SRT) for sentences. It yields the signal-to-noise ratio (in dB) for which half of the sentences are correctly perceived. The SRT defines to what degree speech must be audible to a listener in order to become just intelligible. There are indications that elderly listeners have greater difficulty in understanding speech in adverse listening conditions than young listeners. This may be partly due to the differences in hearing sensitivity (presbycusis), hence audibility, but other factors, such as temporal acuity, may also play a significant role. A potential measure for the temporal acuity may be the threshold to which speech can be accelerated, or compressed in time. A new test is introduced where the speech rate is varied adaptively. In analogy to the SRT, the time-compression threshold (or TCT) then is defined as the speech rate (expressed in syllables per second) for which half of the sentences are correctly perceived. In experiment I, the TCT test is introduced and normative data are provided. In experiment II, four groups of subjects (young and elderly normal-hearing and hearing-impaired subjects) participated, and the SRT's in stationary and fluctuating speech-shaped noise were determined, as well as the TCT. The results show that the SRT in fluctuating noise and the TCT are highly correlated. All tests indicate that, even after correction for the hearing loss, elderly normal-hearing, subjects perform worse than young normal-hearing subjects. The results indicate that the use of the TCT test or the SRT test in fluctuating noise is preferred over the SRT test in stationary noise. (C) 2002 Acoustical Society of Americ