Bilinguals recognize words with shared morphology and phonology cross-linguistically (i.e., cognates) faster than words that do not have these characteristics. Moreover, higher phonological overlap in cognates enhances the effects, which suggests that phonology eases word recognition. However, it is currently unclear whether words compete purely morphologically before spoken word recognition within language and whether proficiency in the L2 modulates the degree of morphological competition. Spanish monolinguals and English L2 learners of Spanish with varying L2 proficiency completed an auditory lexical decision task in Spanish. Stimuli were phonological sequences of Spanish words prior to a recognition point (e.g., /mark/ in /marko/) whose activated cohorts were minimal pairs. Some pairs were morphologically related (e.g., "huerto" 'vegetable patch' versus "huerta" 'vegetable garden'), whereas some others had no morphological relationship (e.g., "marco" 'frame' versus "marca" 'brand'). Results showed that both groups processed solely phonological competitors in a similar way as they did with morphological competitors. Taken together, these findings suggest that morphological relatedness does not modulate either L1 or L2 spoken word recognition prior to a recognition point when speakers listen to words in absence of context. In addition, the findings suggest that the L2 recognition architecture is qualitatively similar to that of native speakers.