Spatial separation advantage in noisy situations has been demonstrated with behavioral studies. When noise direction separates from speech direction, speech understanding is improving. We aimed to study this advantage with using Cortical Auditory Evoked Potentials on normal hearing in free field. Twenty subjects with normal hearing participated in this study. Speech stimuli /ba/ were presented in front of the subject (0°). Continuous Speech Noise (+5 signal-to-noise ratio) was presented either in front of the subject (0°), left side (-90°) or right side (+90°). N1 and P2 complex has been recorded in quiet condition and three noisy conditions. We found a significant effect of noise direction on N1, P2 latencies. When noise presented in the same direction with speech stimuli, N1, and P2 latency was prolonged much more than noise present on the left side and right side. N1-P2 amplitudes was increased when noise comes from right side related to other directions. These findings suggest that CAEPs may have a potential to explain cortical mechanisms of spatial release from masking and behavioral speech understanding in noise performance.