In this paper, we propose a new version of the phoneme monitoring task that is well-suited for the study of lexical processing. The generalized phoneme monitoring (GPM) task, in which subjects detect target phonemes appearing anywhere in the test words, was shown to be sensitive to associative context effects. In Experiment 1, using the standard phoneme monitoring procedure in which subjects detect only word-initial targets, no effect of associative context was obtained. In contrast, clear context effects were observed in Experiment 2, which used the GPM task. Subjects responded faster to word-initial and word-medial targets when the target-bearing words were preceded by an associatively related word than when preceded by an unrelated one. The differential effect of context in the two versions of the phoneme monitoring task was interpreted with reference to task demands and their role in directing selective attention. Experiment 3 showed that the size of the context effect was unaffected by the proportion of related words in the experiment, suggesting that the observed effects were not due to subject strategies.