The purpose of this investigation was to determine whether normal-hearing and hearing-impaired listeners perceive phoneme features differently in noise and to determine whether phoneme perception changes as a function of signal-to-noise ratio (S/N). Consonant-vowel recognition by normal-hearing and hearing-impaired listeners was assessed in quiet and in three noise conditions. Analysis of total percent correct recognition scores revealed significant effects of hearing status, S/N, and vowel context. Patterns of phoneme errors were analyzed by INDSCAL. Derived consonant features that accounted for phoneme errors by both subject groups were similar to ones reported by other investigators. However, weightings associated with the individual features varied with changes in noise condition. Although hearing-impaired listeners exhibited poorer overall nonsense syllable recognition scores in noise than normal-hearing listeners, no specific set of features emerged from the multidimensional scaling procedures that could uniquely account for this performance deficit.