In order to determine the effects of hearing loss and spectral shaping on a dynamic spectral speech cue, behavioral identification and neural response patterns of stop-consonant stimuli varying along the /b-d-g/ place-of-articulation continuum were measured from 11 young adults (mean age = 27 years) and 10 older adults (mean age = 55.2 years) with normal hearing, and compared to those from 10 older adults (mean age = 61.3 years) with mild-to-moderate hearing impairment. Psychometric functions and N1-P2 cortical evoked responses were obtained using consonant-vowel (CV) stimuli with frequency-independent (unshaped) amplification as well as with frequency-dependent (shaped) amplification that enhanced F2 relative to the rest of the stimulus. Results indicated that behavioral identification and neural response patterns of stop-consonant CVs were affected primarily by aging and secondarily by age-related hearing loss. Further, enhancing the audibility of the F2 transition cue with spectrally shaped amplification partially reduced the effects of age-related hearing loss on categorization ability but not neural response patterns of stop-consonant CVs. These findings suggest that aging affects excitatory and inhibitory processes and may contribute to the perceptual differences of dynamic spectral cues seen in older versus young adults. Additionally, age and age-related hearing loss may have separate influences on neural function.