A computerized version of the California consonant test [Terry etal., Ear Hear. 13, 70–79 (1992)] was used to evaluate a wearable digital beam-forming binaural hearing aid. The binaural aid uses an analysis–synthesis method where phase and magnitude cues, derived from microphone placement at the ears, are used to attenuate sounds from locations other than the 0-deg azimuth position. Normal hearing subjects, with their left ear occluded to reduce binaural cues, were used together with hearing impaired subjects for evaluation. Speech at 0 azimuth was presented via loudspeaker at 50 dBA. In the noise condition four talker babble at 35-deg azimuth (54 dBA) was mixed with the target speech. The hearing aid was programmed to give a basic 6-dB/oct preemphasis. Overall gain for the hearing impaired subjects was initially adjusted to give approximately a 70% intelligibility score for the speech alone condition. Subjects were instructed to maintain body and head position while responding to word choices shown on a screen positioned above the target speaker. Both subject groups showed a relative improvement in intelligibility and response times for the beam processing mode in the speech in noise condition.