A lot of work has focused on compensating nonlinear distortions ofthe microspeaker under large excitation, yet it is unclear at which levelthe effect of nonlinear distortion is imperceptible or not annoying. Inthis study virtual listening tests were performed to evaluate thedeterioration of sound quality in music signals with different levels ofnonlinear distortion by a microspeaker. Binaural recordings of themusic played by the microspeaker were made at different voltagelevels, adjusted to the same RMS power, and afterwards reproducedby a low distortion reference headphone. The “double-blind triple-stimuluswith hidden reference” method was used in the listening tests. Listenerswere required to not only discern the distortion, but also rank theseverity of the distortion. The effects of several factors includingsubject, program material and distortion level on the perceiveddistortion are discussed.