Purpose: Previous work has found that both young and older adults exhibit a lexical bias in categorizing speech stimuli. In young adults, this has been argued to be an automatic influence of the lexicon on perceptual category boundaries. Older adults exhibit more top-down biases than younger adults, including an increased lexical bias. We investigated the nature of the increased lexical bias using a sensorimotor adaptation task designed to evaluate whether automatic processes drive this bias in older adults. Method: A group of older adults (n = 27) and younger adults (n = 35) participated in an altered auditory feedback production task. Participants produced target words and nonwords under altered feedback that affected the 1st formant of the vowel. There were 2 feedback conditions that affected the lexical status of the target, such that target words were shifted to sound more like nonwords (e.g., less-liss) and target nonwords to sound more like words (e.g., "kess-kiss"). Results: A mixed-effects linear regression was used to investigate the magnitude of compensation to altered auditory feedback between age groups and lexical conditions. Over the course of the experiment, older adults compensated (by shifting their production of 1st formant) more to altered auditory feedback when producing words that were shifted toward nonwords (less-liss) than when producing nonwords that were shifted toward words (kess-kiss). This is in contrast to younger adults who compensated more to nonwords that were shifted toward words compared to words that were shifted toward nonwords. Conclusion: We found no evidence that the increased lexical bias previously observed in older adults is driven by a greater sensitivity to top-down lexical influence on perceptual category boundaries. We suggest the increased lexical bias in older adults is driven by postperceptual processes that arise as a result of age-related cognitive and sensory changes.