An intense low-frequency tone can affect the perception of amplitude modulation (AM) applied to a high-frequency carrier. Here, thresholds for detecting AM of a 3000-Hz carrier were measured in the presence of a 50-Hz pure tone at 91 dB SPL. When the carrier was presented at 20 dB sensation level (SL), the thresholds were higher than in the absence of the 50-Hz tone, increased when the AM frequency was increased from 20 to 100 Hz, and did not show a maximum near 50 Hz, as would be expected if the effect of the 50-Hz tone resulted from modulation detection interference. When the AM frequency was fixed at 50 Hz, the AM detection thresholds showed a minimum when the phase of the AM was 90° ahead of the phase of the 50-Hz tone (denoted Δφ = 90°) and a maximum for Δφ = 270°. To assess the role of the outer hair cells (OHCs), AM detection thresholds were measured as a function of Δφ using SLs of 20 and 50 dB for normal-hearing participants and 20 dB for hearing-impaired participants. It was assumed that the latter would have impaired OHC function. The pattern of the results was similar across SLs and groups: AM detection thresholds were 8–10 dB lower for Δφ = 90° than for Δφ = 270° in all cases. This suggests that the OHCs do not play a large role in these effects and supports the idea that the low-frequency tone biases the responses of inner hair cells tuned to high frequencies.