The auditory system of the horseshoe bat is finely tuned to the bat's individual vocalization frequency. To compensate for flight-induced Doppler shifts in the echo frequency, the horseshoe bat adjusts the frequency of its echo-location call to maintain the echo frequency within the narrow range to which its auditory system is best tuned. In this report I describe neurons in the midbrain tegmentum of the horseshoe bat, with properties that strongly indicate their involvement in this Doppler-shift compensation. The activity of these neurons was influenced by both sound emission and auditory stimuli. Neuronal discharges in response to vocalization, however, differed from those in response to purely auditory stimuli that mimicked the bat call. When an auditory stimulus was temporally locked to a preceding vocalization, the response was dependent on the time delay between the two. This delay-sensitivity completely disappeared when vocalizations were simulated acoustically. Only those vocalization and 'echo' parameters were encoded that occur in Doppler-shift compensation. In conclusion, I suggest a model for the regulation of the vocalization frequency through auditory feedback.