Much of the literature surrounding bilingual spoken word recognition is based on bilinguals of non-tonal languages. In the Mandarin spoken word recognition literature, lexical tones are often considered as equally important as segments in lexical processing. It is unclear whether and how lexical tones contribute to bilingual language processing. One recent study demonstrates that tonal bilinguals require the availability of both tonal and segmental information to induce cross-language lexical competition during bilingual lexical access, even without phonological overlap between the target and non-target language. The current study investigates whether overt phonological overlap between the target and non-target language would equally require both tonal and segmental information available to induce cross-language lexical competition. We employed two auditory lexical decision experiments with both Mandarin-English bilinguals and English monolinguals to test whether inter-lingual homophones (IH) would induce lexical competition from the non-target language, L1 Mandarin. Our results show that cross-language lexical competition was only observed with the presence of lexical tones, in addition to segmental overlap.