Masking period patterns (MPPs) were measured in listeners with normal and impaired hearing using amplitude-modulated tonal maskers and short tonal probes. The frequency of the masker was either the same as the frequency of the probe (on-frequency masking) or was one octave below the frequency of the probe (off-frequency masking). In experiment 1, MPPs were measured for listeners with normal hearing using different masker levels. Carrier frequencies of 3 and 6 kHz were used for the masker. The probe had a frequency of 6 kHz. For all masker levels, the off-frequency MPPs exhibited deeper and longer valleys compared with the on-frequency MPPs. Hearing-impaired listeners were tested in experiment 2. For some hearing-impaired subjects, masker frequencies of 1.5 kHz and 3 kHz were paired with a probe frequency of 3 kHz. MPPs measured for listeners with hearing loss had similar shapes for on- and off-frequency maskers. It was hypothesized that the shapes of MPPs reflect nonlinear processing at the level of the basilar membrane in normal hearing and more linear processing in impaired hearing. A model assuming different cochlear gains for normal versus impaired hearing and similar parameters of the temporal integrator for both groups of listeners successfully predicted the MPPs.