The study evaluated whether the direction (inhibitory or facilitative) of the phonological neighborhood density effect in English spoken word recognition was modulated by the relative strength of competitor activation (neighborhood type) in two groups of English-dominant learners of Spanish who differed in language experience. Classroom learners and heritage learners of Spanish identified spoken English words from dense (e.g., BEAR) and sparse (e.g., BOAT) phonological neighborhoods presented in moderate noise. The phonological neighborhood was separately manipulated at word onset (cohort) and word offset (rhyme). Classroom learners were overall slower in recognizing spoken words from denser neighborhoods. Strongly active (onset) neighbors exerted inhibitory effects in both classroom and heritage learners. Critically, weakly active (offset) neighbors exerted inhibitory effects in classroom learners but facilitative effects in heritage learners. The results suggest that the activation of both within and cross-language neighbors should be considered in determining the direction of neighbor effects in bilingual lexical processing.