Speech sounds are perceived relative to spectral properties of surrounding speech. For instance, target words ambiguous between /bɪt/ (with low F1) and /bɛt/ (with high F1) are more likely to be perceived as “bet” after a ‘low F1’ sentence, but as “bit” after a ‘high F1’ sentence. However, it is unclear how these spectral contrast effects (SCEs) operate in multi-talker listening conditions. Recently, Feng and Oxenham [(2018b). J.Exp.Psychol.-Hum.Percept.Perform. 44(9), 1447–1457] reported that selective attention affected SCEs to a small degree, using two simultaneously presented sentences produced by a single talker. The present study assessed the role of selective attention in more naturalistic ‘cocktail party’ settings, with 200 lexically unique sentences, 20 target words, and different talkers. Results indicate that selective attention to one talker in one ear (while ignoring another talker in the other ear) modulates SCEs in such a way that only the spectral properties of the attended talker influences target perception. However, SCEs were much smaller in multi-talker settings (Experiment 2) than those in single-talker settings (Experiment 1). Therefore, the influence of SCEs on speech comprehension in more naturalistic settings (i.e., with competing talkers) may be smaller than estimated based on studies without competing talkers.