How do we know where a sound comes from even in noise environments, such as at the cocktail party? We need to answer this question to develop directional processing in binaural (having or relating to two ears) hearing aids, teleconferencing techniques and robot localization systems. The question is at the heart of understanding the human auditory mechanism; what special features human have and how our brains process signals to localize sound sources. This project aims to develop new methods and technologies of binaural processing for source localization in complex acoustic environments based on these understandings.