The performance of 32 children with language impairment-11 with expressive language impairment only (LI-E subgroup) and 21 with both receptive and expressive language impairment (LI-ER subgroup)-and of 22 children without language impairment (LN subgroup) was examined in a study of perception and imitation of synthesized /ba/ and /da/ syllables. Formant transition duration and task difficulty were varied in the perceptual tasks. The LI-E children were able to identify the syllables as well as the LN; the LI-ER were not. Of the children who succeeded on an identification task and proceeded to a serial ordering task incorporating the same stimuli, the LI-E children were the least successful on the second task. The ability to label the stimuli perceptually was highly correlated with absence of speech articulation errors in the LI children and with performance on the imitation task in all subjects. The findings are examined in relation to the hypotheses that rapid-rate perceptual processing is the sole basis of language impairment in children and that, in these children, production skill may predict phoneme perception rather than the reverse.