Objectives To investigate the perception of interaural level differences (ILDs) in children with bilateral cochlear implants (BiCIs) and compare them to normal hearing peers. As intracranial shifts in perception of ILDs might have an effect on localization, this was further investigated. Methods ILD responses on four different frequency bands (broadband, low-pass, mid-pass and high-pass) were measured in 9 children with BiCIs and 15 children with normal hearing. In the children with BiCIs, 7 of them were implanted sequentially and 2 of them simultaneously. The outcomes were compared with the outcomes from a previous study on advanced localization using the same stimuli as in the current study. The effect of chronological age, inter-implant delay and preoperative residual hearing were also taken into account. Results No significant differences in ILD responses between children with BiCIs and children with normal hearing were found. For broadband stimuli, children with sequential BiCIs showed a significant shift in their response towards the first implant. A significant correlation was found between inter-implant delay and shift in ILD response for the broadband and high-pass stimuli. The shift in ILD response had no effect on localization. Conclusion Children with BiCIs are able to perceive ILD responses similar to those of normal hearing children. The inter-implant delay has a negative effect on the lateralization of the response towards the first implant side, indicative of deprivation of high-frequency sounds prior to receiving a second implant. This shift, however, is not associated with a shift in localization response.