Band-limited sound signals are found in a broad range of applications e.g. telephones where the frequency range is 300 to approximately 3500 Hz. When using such applications in connection with binaural auralization for teleconferencing some problems may arise regarding the location of the sound. This is because the human hearing normally uses a larger frequency range in localization. This project has investigated the human ability to localize sound sources with a limited bandwidth in static listening situations. In the project it has been possible to show how the localization deteriorates when different limitations of bandwidth is introduced via removal of high as well as low frequency content. Supported by STVF/FTP.