This study examined the time-course of context effects on spoken word recognition during Chinese sentence processing. We recruited 60 native Mandarin listeners to participate in an eye-tracking experiment. In this eye-tracking experiment, listeners were told to listen to a sentence carefully, which ended with a Chinese homophone, and look at different visual probes (Chinese characters or different line-drawing pictures) presented concurrently on the computer screen naturally. Different types of context and probe types were manipulated in the experiment. The results showed that (1) preceding sentence context had an early effect on spoken word recognition processes and (2) phonological information of the distracters had only a negligible effect on the spoken word recognition processes. Finally, the patterns of eye-tracking results seemed to favor an interactive approach in spoken word recognition.