This study tested the hypothesis that maternal drinking early in pregnancy affects the development of the child's central auditory processing. A follow-up study of 167 children took place 6 years after their mothers participated in a survey concerning health and drinking practices during the early stages of pregnancy. Indications of problem drinking (IPD) reported during early pregnancy were used as a measure of maternal alcohol use. Children were administered the Staggered Spondaic Word (SSW) test of central auditory processing, the Wechsler Preschool and Primary Scale of Intelligence, and the Token Test. Path analyses controlling for sociodemographic characteristics and maternal IQ indicated that IPD were negatively related to left-ear SSW scores, but were not related to right-ear scores. IPD had a significant indirect effect via left-ear SSW scores on Verbal IQ (VIQ) and Token Test scores, but not on Performance IQ. These results suggest that children of mothers who report two or more IPD early in pregnancy are at increased risk for problems in auditory perception, which may lead to the development of learning disabilities and a reduction in overall verbal functioning. (RH)