Neurons in the lateral superior olive (LSO) were characterized in vivo, by extracellular and intracellular recordings. Principal neurons of the LSO are excited by ipsilateral auditory stimuli and exhibit binaural inhibition, as observed in extracellular recordings. In subsequent intracellular recordings, ipsilateral acoustic stimuli evoked robust excitatory postsynaptic potentials (epsps), while contralateral stimuli evoked large inhibitory postsynaptic potentials (ipsps). The contralaterally evoked ipsps were reversed when the cell was polarized below resting membrane potential and when current was injected into neurons recorded with chloride-filled electrodes. The ipsp is probably a reflection of contralaterally evoked release of glycine acting through glycinergic receptors on the somata and proximal dendrites of these neurons. The properties of the epsps are consistent with data suggesting that ipsilaterally evoked excitation may be mediated by an excitatory amino acid-like substance acting through quisqualate or kainate receptors at dendritic locations.