In auditory neuropathy, sensory transduction and amplification is preserved, but abnormal neural encoding of sound stimuli impairs speech comprehension severely, beyond what would be expected on the basis of increased threshold of audibility. Here, Moser and Starr provide an overview of the mechanisms of auditory neuropathy, including auditory synaptopathy. Moreover, the authors provide a brief guide to physiological and psychophysical tests for the clinical diagnosis of the disorders, discuss the strategies for hearing rehabilitation, and provide an outlook on future therapies.