First, we review recent efforts to demonstrate language competence in apes and dolphins. Then, with techniques originally devised by Herman in his artificial language studies with dolphins (Tursiops truncatus), we show that smaller brained sea lions (Zalophus californianus), like larger brained dolphins, are capable of comprehending signals about a relationship between two designated objects. The language we used consisted of signs designating properties of size, brightness, or location (modifiers), types of objects, and actions. The results of our experiments with two sea lions support Premack’s notion that Herman’s dolphins (as well as our sea lions) relied principally on two phrase structure rules to comprehend thousands of novel, unique messages that could be transmitted gesturally by a “blind” human signaler. One rule instructs the animal to perform an action directly on an object designated by an object signal and one or two optional modifiers. The instruction takes the form (Modifier) + Object + Action. The second rule instructs the animal to perform an action relative to two designated objects. The object to be transported and the goal object were assigned their particular roles by their position in the sign sequence. The relational instruction takes the form (Modifier) + Object A + (Modifier) + Object B + Action. Reversing the order of the two object signals in the string reversed the meaning of the message. For both sea mammals we found support for Herman’s notion that the critical constraint on the application of the second rule is memory for Object A (the goal item). The variables influencing memory for the goal item were: (a) the number of objects available, (b) bias for certain goal items, (c) whether the goal item was fixed in space, that is whether it was a transportable or nontransportable object, and (d) whether the goal item (Object A) and the transported item were reversed on successive trials. We conclude that both dolphins and sea lions can be taught to comprehend sentence-like instructions. The simplified language learned by these marine mammals depends on the following learned cognitive skills: (a) acquiring a repertoire of arbitrary conditional relations between signals and objects, (b) perceiving and conceptualizing objects and events within class and relational categories, and (c) acquiring a conditional sequential discrimination.