Humans and cats can localize a sound source accurately if its spectrum is fairly broad and flat(1-3), as is typical of most natural sounds. However, if sounds are filtered to reduce the width of the spectrum, they result:in illusions of sources that are very different from the actual locations, particularly in the up/down and front/back dimensions(4-6). Such illusions reveal that the auditory system relies on specific characteristics of sound spectra to obtain cues for localization(7). In the-auditory cortex of cats, temporal firing patterns of neurons can signal the locations of broad-band sounds(8-9). Here we show that such spike patterns systematically mislocalize sounds that have been passed through a narrow-band filter. Both correct and incorrect locations signalled by neurons can be predicted quantitatively by a model of spectral processing that also predicts correct and incorrect localization judgements by human listeners(6). Similar cortical mechanisms, if present in humans, could underlie human auditory spatial perception.