Echolocating bats and dolphins use biosonar to determine target range, but differences in range discrimination thresholds have been reported for the two species. Whether these differences represent a true difference in their sensory system capability is unknown. Here, the dolphin's range discrimination threshold as a function of absolute range and echo-phase was investigated. Using phantom echoes, the dolphins were trained to echo-inspect two simulated targets and indicate the closer target by pressing a paddle. One target was presented at a time, requiring the dolphin to hold the initial range in memory as they compared it to the second target. Range was simulated by manipulating echo-delay while the received echo levels, relative to the dolphins' clicks, were held constant. Range discrimination thresholds were determined at seven different ranges from 1.75 to 20 m. In contrast to bats, range discrimination thresholds increased from 4 to 75 cm, across the entire ranges tested. To investigate the acoustic features used more directly, discrimination thresholds were determined when the echo was given a random phase shift (±180°). Results for the constant-phase versus the random-phase echo were quantitatively similar, suggesting that dolphins used the envelope of the echo waveform to determine the difference in range.