Background: Children with reading disabilities (RD) exhibit difficulty in perceiving speech in background noise due to poor auditory stream segregation. There is a dearth of literature on measures of temporal fine structure sensitivity (TFS) and concurrent vowel perception abilities to assess auditory stream segregation in children with reading disabilities. Hence the present study compared temporal fine structure sensitivity (TFS) and concurrent vowel perception abilities between children with and without reading deficits. Method: The present research consisted of a total number of 30 participants, 15 children with reading disabilities (RD) and fifteen typically developing (TD) children within the age range of 7-14 years and were designated as Group 1 and Group 2 respectively. Both groups were matched for age, grade, and classroom curricular instructions. The groups were evaluated for TFS and concurrent vowel perception abilities and the performance was compared using independent ‘t’ test and repeated measure ANOVA respectively. Results: Results revealed that the children with RD performed significantly (p < 0.001) poorer than TD children on both TFS and concurrent vowel identification task. On concurrent vowel identification tasks, there was no significant interaction found between reading ability and F0 difference suggesting that the trend was similar in both the groups. Conclusion: The study concludes that the children with RD show poor temporal fine structure sensitivity and concurrent vowel identification scores compared to age and grade matched TD children owing to poor auditory stream segregation in children with RD.