Interneurons and pyramidal cells were identified electrophysiologically in the hippocampus of anesthetized rats. Paired tones were presented 500 ms apart, and the resulting neuronal response was compared to differences in the amplitude of an auditory evoked potential (N40) elicited by each of the tones. Generally, the N40 elicited in response to the second tone is less than the response to the first. Pyramidal cells exhibited their most pronounced activation within 40 ms after the first tone. The post-stimulus discharge activation of interneurons was less than the pyramidal cells, but activation of different interneurons occurred at various times throughout the interval between the two tones. The presence or absence of suppression of N40 amplitude in the paired stimulus paradigm correlated with differences in the auditory response of both the interneurons and pyramidal cells. The activity of interneurons in relationship to gating of hippocampal auditory response is discussed.