Steady-state potentials evoked in response to binaural, sinusoidally amplitude-modulated (AM) pure tones and broadband noise signals were recorded differentially from position F4 and the ipsilateral mastoid on the human scalp. The responses elicited by the AM stimuli were approximately periodic waveforms whose energy was predominantly at the modulation frequency of the stimulus. The magnitude of responses was between 0.1 and 4 microV for modulation frequencies between 2 and 400 Hz imposed on a 1-kHz carrier signal. The magnitude of the responses increased linearly with log modulation depth for low (4 Hz) and high (80 Hz) modulation rates. The response magnitude also increased linearly with the mean intensity of the sound for intensities up to 60 dB above the subject's pure tone threshold; at higher levels the response saturated. The relationship between response magnitude and modulation frequency (the modulation transfer function) was a lowpass function for both pure tone and broadband noise carrier signals. The modulation transfer functions were similar to those obtained from human psychophysical measurements where spectral cues are either unavailable or not used by the subject. The responses also contained a significant component at the second harmonic of the modulation frequency. The magnitude of this component was greatest at modulation rates between 5 and 20 Hz. The responses elicited by ipsilateral and contralateral monaural stimulation were approximately equal in magnitude, and binaural stimulation produced a potential 30% greater than the individual monaural responses. It is suggested that the evoked response represents the entrained neural activity to temporal amplitude fluctuations, and reflects the psychophysically measured performance of the auditory system for the detection and analysis of amplitude modulation.