Previous studies have demonstrated that some species of odontocetes can be conditioned to reduce hearing sensitivity when warned of an impending intense sound; however, the underlying mechanisms remain poorly understood. In the present study, conditioned hearing attenuation was elicited in two bottlenose dolphins by pairing a 10-kHz tone (the conditioned stimulus) with a more intense tone (the unconditioned stimulus) at 28 kHz. Testing was performed in air, with sounds presented via contact transducers. Hearing was assessed via noninvasive measurement of monaural auditory nerve responses (ANR) and binaural auditory brainstem responses (ABR). ABRs/ANRs were measured in response to 40-kHz tone bursts, over 2 to 3-s time intervals before and after the conditioned and unconditioned stimuli. Results showed reductions in ABR/ANR amplitude and increases in latency after pairing the warning and more intense tones. Monaural ANRs from the left and right ears were attenuated by similar amounts when the warning and more intense sounds were preferentially applied to the right ear. The data support a neural mechanism operating at the level of the cochlea and/or auditory nerve and suggest the involvement of neural projections that can affect the contralateral ear.