Background:We assessed the speech perception performance of the elderly population with hearing impairment in quiet and noisy listening environments as a function of the number of compression channels in digital hearing aids. Materials and Methods: Participants were 14 elderly individuals with hearing impairment in the age range of 65 to 70 years (M=67.35; SD=±1.63). Speech recognition score (SRS) testing as a measure of speech perception was performed on each participant in quiet and +5 dB SNR listening environments with hearing aids in 2, 4, 6, 8, 10, and 12 channel settings respectively. Results: Results revealed significant difference in SRS between 2 vs 4, 2 vs 6, 2 vs 8, 2 vs 10, 2 vs 12, 4 vs 12 channel settings, and no significant difference between 4 vs 6, 4 vs 8, 4 vs 10, 4 vs 12, 6 vs 8, 6 vs 10, 6 vs 12, 8 vs 10, 8 vs 12, 10 vs 12 channel settings in quiet listening environment. Whereas in +5 dB SNR listening environment, there was significant difference in SRS between 2 vs 4, 2 vs 6, 2 v 8, 2 vs 10, 2 vs 12, 4 vs 6, 4 vs 8, 4 vs 10, 4 vs 12 channel settings, and no significant difference between 6 vs 8, 6 vs 10, 6 vs 12, 8 vs 10, 8 vs 12, 10 vs 12 channel settings. Conclusions: Participants achieved maximum speech perception benefit with hearing aids in 4 and 6 channel settings in quiet and noisy listening environments respectively. Further, it was noticed that besides greater performance in the quiet listening environment, the presence of background noise considerably degraded speech perception irrespective of channel settings.