The deterioration of sound localization accuracy during a listener’s head/body rotation is independent of the listener’s rotation velocity. However, whether this deterioration occurs only during physical movement in a real environment remains unclear. In this study, we addressed this question by subjecting physically stationary listeners to visually induced self-motion, i.e., vection. Two conditions—one with a visually induced perception of self-motion (vection) and the other without vection (control)—were adopted. Under both conditions, a short noise burst (30 ms) was presented via a loudspeaker in a circular array placed horizontally in front of a listener. The listeners were asked to determine whether the acoustic stimulus was localized relative to their subjective midline. The results showed that in terms of detection thresholds based on the subjective midline, the sound localization accuracy was lower under the vection condition than under the control condition. This indicates that sound localization can be compromised under visually induced self-motion perception. These findings support the idea that self-motion information is crucial for auditory space perception and can potentially enable the design of dynamic binaural displays requiring fewer computational resources.