Background: Intelligibility measurement is influenced by the characteristics of a speaker, listener and contextual factors. This study addresses the clinical problem of measuring speech intelligibility in children with velopharyngeal insufficiency (VPI) in real-world conditions. Aims: The purpose of the study was to investigate the effects of background noise on speech intelligibility in speakers with velopharyngeal insufficiency (VPI) compared to typical speech. The study further determined the contribution of nasalance and articulation accuracy in judgments of intelligibility. Methods & Procedures: Fifteen speakers diagnosed with VPI and their typical peers provided audio recordings of 20 sentences from the Hearing in Noise Test. Speech samples were presented over quiet and noise (+5 dB signal-to-noise ratio) conditions to 70 naïve listeners. Intelligibility scores from naïve listeners' orthographic transcriptions were obtained as the percentage of correctly identified words. Outcomes & Results: A repeated-measures analysis of variance showed diagnosis of VPI (F(1, 28) = 13.44, p = 0.001, and presence of noise (F(1, 28) = 39.18, p < 0.001) significantly affected the intelligibility scores. There was no interaction between the diagnosis of VPI and noise (F(1, 28) = 0.06, p = 0.80). The multivariate regression analysis indicated that nasalance and articulation accuracy explain a significant amount of variance in the intelligibility scores of VPI speakers in quiet (F(2, 12) = 7.11, p < 0.05, R[superscript 2] = 0.55, R[superscript 2][subscript Adjusted] = 0.47) and noise (F(2, 12) = 6.32, p < 0.05, R[superscript 2] = 0.51, R[superscript 2][subscript Adjusted] = 0.43), but the significance mainly came from the effect of percentage of consonants correct ([beta] = 0.97, t(12) = 2.90, p = 0.01). Percentage of consonants correct significantly increased the speech intelligibility in either with or without noise conditions. Conclusions & Implications: The current work suggests that background noise will significantly affect reductions in intelligibility in both groups; the effect is more prominent in VPI speech. It was also further noted that articulation accuracy significantly affected intelligibility in quiet and noise rather than nasalance scores.