It is well recognised that normal hearing people use their hearing in both ears to locate sounds and to understand speech in complex listening conditions. Whereas it is standard practice to provide two hearing aids to children with bilateral hearing loss, the situation with cochlear implantation is less certain. Questions remain as to what binaural aided functioning is possible for children who use a hearing aid and a cochlear implant in opposite ears (bimodal hearing). The first part of this paper draws on research at the National Acoustic Laboratories to show that children who used bimodal hearing devices obtained binaural advantages in localization. They could also take advantage of head shadow and binaural redundancy for speech intelligibility. The second part presents data showing that some hearing-impaired children may have binaural processing deficits even when bilateral stimulation is provided. Additional strategies may be necessary to develop or enable the use of binaural cues by these children.