Auditory source separations of as little as 1 degree are detectable. However, presenting auditory stimuli at small separations presents technical challenges, with loudspeaker separation limited by transducer diameter. An alternative procedure is to utilize phantom sources, with the perceived position of a single source determined by the relative output levels of two spatially separated loudspeakers. Therefore, it is important to determine whether real and phantom sources can be localized with the same precision. In the present experiment, listeners localized real (individual) sources and phantom sources computed using a tangent-law model giving the same nominal azimuthal angles as the real sources. Listeners used a laser pointer to indicate perceived source location. Infrared cameras detected pointer position with responses stored in terms of azimuth. Signals were broadband or narrowband (300-700 Hz and 3800–4200 Hz) noise, 100 or 500 ms in duration. Generally, phantom sources were localized with less precision than real sources, and high-frequency signals were localized with less precision than broadband or low-frequency signals, with no effect of duration. Results show that phantom sources are localized with sufficient accuracy and precision to be useful in assessing auditory spatial acuity, but they are not localized with the same precision as real sources.