Directional hearing may enable fishes to seek out prey, avoid predators, find mates, and detect important spatial cues. Early sound localization experiments gave negative results, and it was thought unlikely that fishes utilized the same direction-finding mechanisms as terrestrial vertebrates. However, fishes swim towards underwater sound sources, and some can discriminate between sounds from different directions and distances. The otolith organs of the inner ear detect the particle motion components of sound, acting as vector detectors through the presence of sensory hair cells with differing orientation. However, many questions remain on inner ear functioning. There are problems in understanding the actual mechanisms involved in determining sound direction and distance. Moreover, very little is still known about the ability of fishes to locate sound sources in three-dimensional space. Do fishes swim directly towards a source, or instead “sample” sound levels while moving towards the source? To what extent do fishes utilize other senses and especially vision in locating the source? Further behavioral studies of free-swimming fishes are required to provide better understanding of how fishes might actually locate sound sources. In addition, more experiments are required on the auditory mechanism that fishes may utilize.