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Responses of chinchilla auditory-nerve fibers were measured for stimulus conditions analogous to those in which psychophysical release from masking has been observed in humans. The maskers were two equal power, narrow-band noise stimuli with different amplitude envelopes. The neurons in the sample fell into three groups that resolved the maskers' envelopes with varying degrees of accuracy. The boundaries of these groups were not sharply delineated by characteristic frequency (CF) but were dependent on the relationship between the masker level and the neurons' thresholds at the masker frequency. For the neurons that best preserved the maskers' envelope fluctuations, a neural release from masking was observed; rate-based neural masked thresholds were higher for the masker with the least fluctuating envelope. The results suggest that neural and psychophysical release from masking arises because the probe evokes larger rate changes, relative to the background response to the masker, during periods of low masker energy. Between two otherwise equivalent maskers, the one with the periods of lowest energy will produce the lower masked thresholds because rate changes are larger and more detectable.