While considerable dialectal variation exists, almost all varieties of Spanish exhibit some sort of alternation in terms of the palatal obstruent segments. Typically, the palatal affricate [??] tends to occur in word onset following a pause and in specific linear phonotactic environments. The palatal fricative [?] tends to occur in syllable onset in other contexts. We show that listeners' perceptual sensitivity to the palatal alternation depends upon the task and exposure to Spanish input. For native Spanish listeners, the palatal alternation boosts segmentation accuracy on an artificial speech segmentation task and also reduces latencies on a phonotactically-conditioned elision task. L2 Spanish listeners, on the other hand, only benefit from the palatal alternation in the second task. These results suggest that while Spanish L2 learners benefit from the presence of the alternation in linear phonotactic terms, this benefit does not carry over to a more abstract segmentation task.