During spoken language comprehension, listeners transform continuous acoustic cues into categories (e.g. /b/ and /p/). While longstanding research suggests that phoneme categories are activated in a gradient way, there are also clear individual differences, with more gradient categorization being linked to various communication impairment like dyslexia and specific language impairments (Joanisse, Manis, Keating, & Seidenberg, 2000; López-Zamora, Luque, Álvarez, & Cobos, 2012; Serniclaes, Van Heghe, Mousty, Carré, & Sprenger-Charolles, 2004; Werker & Tees, 1987). Crucially, most studies have used two-alternative forced choice (2AFC) tasks to measure the sharpness of between-category boundaries. Here we propose an alternative paradigm that allows us to measure categorization gradiency in a more direct way. We then use this measure in an individual differences paradigm to: (a) examine the nature of categorization gradiency, (b) explore its links to different aspects of speech perception and other cognitive processes, (c) test different hypotheses about its sources, (d) evaluate its (positive/negative) role in spoken language comprehension, and (e) assess whether it can be modified via training. Our results provide validation for this new method of assessing phoneme categorization gradiency and offer valuable insights into the mechanisms that underlie speech perception.