Children with epilepsy are at increased risk for language impairments. Recent studies have suggested that abnormal cortical processing of complex sounds, including speech, may be a contributing factor. Cortical auditory evoked potentials provide an objective, non-invasive method for assessing auditory function in children. We begin with an overview of the cortical auditory system, cortical auditory evoked potentials, and childhood epilepsies. This overview provides a framework for reviewing recent studies using auditory evoked potentials to evaluate sound processing in children with epilepsy. Clinical implications, methodological considerations, and directions for future research are discussed.