The medial olivocochlear (MOC) bundle reduces the gain of the cochlear amplifier through reflexive activation by sound. Physiological results indicate that MOC-induced reduction in cochlear gain can enhance the response to signals when presented in masking noise. Some previous studies suggest that this "antimasking" effect of the MOC system plays a role in speech-in-noise perception. The present study set out to reinvestigate this hypothesis by correlating measures of MOC activity and speech-in-noise processing across a group of normal-hearing participants. MOC activity was measured using contralateral suppression of otoacoustic emissions (OAEs), and speech-in-noise processing was measured by measuring the effect of noise masking on performance in a consonant-vowel (CV) discrimination task and on auditory brain stem responses evoked by a CV syllable. Whereas there was a significant correlation between OAE suppression and both measures of speech-in-noise processing, the direction of this correlation was opposite to that predicted by the antimasking hypothesis, in that individuals with stronger OAE suppression tended to show greater noise-masking effects on CV processing. The current results indicate that reflexive MOC activation is not always beneficial to speech-in-noise processing. We propose an alternative to the antimasking hypothesis, whereby the MOC system benefits speech-in-noise processing through dynamic (e.g., attention- and experience-dependent), rather than reflexive, control of cochlear gain.