Two experiments were conducted involving the auditory localization aftereffect, in which the perceptual lateralization of a test sound having an interaural time difference (ITD) shifts away from that of a prior adapting sound having a different ITD. First, the frequency selectivity of the aftereffect was examined for sinusoids presented through headphones, with various combinations of adapter and test frequencies below 800 Hz, using the method of constant stimuli. The magnitude of the aftereffect was found to be largest when the frequencies of the two tones were similar, and virtually disappeared at a frequency difference of one-half octave. Second, the ITD selectivity of the aftereffect was examined for 400-Hz sinusoids. Subjects' judgments of lateralization were measured directly in terms of the perceived azimuth of the test tone for various combinations of adapter and test ITDs in the range of +/- 625 microseconds. The magnitude of the aftereffect was found to be largest when adapter and test ITDs differed by approximately 250 microseconds. These results were successfully simulated by an interaural cross-correlation model having gain control. The results are consistent with the idea that the gain of ITD-selective units, located after binaural interaction but before across-frequency integration, is changed by recent input.