This study investigated whether spatial separation between talkers helps reduce cognitive processing load, and how hearing impairment interacts with the cognitive load of individuals listening in multi-talker environments. A dual-task paradigm was used in which performance on a secondary task (visual tracking) served as a measure of the cognitive load imposed by a speech recognition task. Visual tracking performance was measured under four conditions in which the target and the interferers were distinguished by (1) gender and spatial location, (2) gender only, (3) spatial location only, and (4) neither gender nor spatial location. Results showed that when gender cues were available, a 15° spatial separation between talkers reduced the cognitive load of listening even though it did not provide further improvement in speech recognition (Experiment I). Compared to normal-hearing listeners, large individual variability in spatial release of cognitive load was observed among hearing-impaired listeners. Cognitive load was lower when talkers were spatially separated by 60° than when talkers were of different genders, even though speech recognition was comparable in these two conditions (Experiment II). These results suggest that a measure of cognitive load might provide valuable insight into the benefit of spatial cues in multi-talker environments.