Automatic speech recognition (ASR) is one of the most important research areas in the field of speech technology and research. It is also known as the recognition of speech by a machine or, by some artificial intelligence. However, in spite of focused research in this field for the past several decades, robust speech recognition with high reliability has not been achieved as it degrades in presence of speaker variabilities, channel mismatch condi- tions, and in noisy environments. The superb ability of the human auditory system has motivated researchers to include features of human perception in the speech recognition process. This dissertation investigates the roles of perceptual features of human hearing in automatic speech recognition in clean and noisy environments. Methods of simplified synaptic adaptation and two-tone suppression by companding are introduced by temporal processing of speech using a zero-crossing algorithm. It is observed that a high frequency enhancement technique such as synaptic adaptation performs better in stationary Gaussian white noise, whereas a low frequency enhancement technique such as the two-tone sup- pression performs better in non-Gaussian non-stationary noise types. The effects of static compression on ASR parametrization are investigated as observed in the psychoacoustic input/output (I/O) perception curves. A method of frequency dependent asymmetric compression technique, that is, higher compression in the higher frequency regions than the lower frequency regions, is proposed. By asymmetric compression, degradation of the spectral contrast of the low frequency formants due to the added compression is avoided. A novel feature extraction method for ASR based on the auditory processing in the cochlear nucleus is presented. The processings for synchrony detection, average discharge (mean rate) processing and the two tone suppression are segregated and processed separately at the feature extraction level according to the differential processing scheme as observed in the AVCN, PVCN and the DCN, respectively, of the cochlear nucleus. It is further observed that improved ASR performances can be achieved by separating the synchrony detection from the synaptic processing. A time-frequency perceptual spectral subtraction method based on several psychoacoustic properties of human audition is developed and evaluated by an ASR front-end. An auditory masking threshold is determined based on these psychoacoustic e?ects. It is observed that in speech recognition applications, spec- tral subtraction utilizing psychoacoustics may be used for improved performance in noisy conditions. The performance may be further improved if masking of noise by the tonal components is augmented by spectral subtraction in the masked region.