Purpose: In this study, the authors aimed to determine whether children with dyslexia (hereafter referred to as "DYS children") are more affected than children with average reading ability (hereafter referred to as "AR children") by talker and intonation variability when perceiving speech in noise. Method: Thirty-four DYS and 25 AR children were tested on their perception of consonants in naturally produced CV tokens in multitalker babble. Twelve CVs were presented for identification in four conditions varying in the degree of talker and intonation variability. Consonant place (/bi/-/di/) and voicing (/bi/-/pi/) discrimination were investigated with the same conditions. Results: DYS children made slightly more identification errors than AR children but only for conditions with variable intonation. Errors were more frequent for a subset of consonants, generally weakly encoded for AR children, for tokens with intonation patterns (steady and rise-fall) that occur infrequently in connected discourse. In discrimination tasks, which have a greater memory and cognitive load, DYS children scored lower than AR children across all conditions. Conclusions: Unusual intonation patterns had a disproportionate (but small) effect on consonant intelligibility in noise for DYS children, but adding talker variability did not. DYS children do not appear to have a general problem in perceiving speech in degraded conditions, which makes it unlikely that they lack robust phonological representations.