A recenr report demonstrated that 8-month-olds can segment a continuous stream of speech syllables, containing no acoustic or prosodic cues to word boundaries, into wordlike units after only 2 min of listening experience (Saffran, Aslin, & Newport, 1996). Thus, a powerful learning mechanism capable of extracting statistical information Slam fluent speech is available early in development. The present study extends these results by documenting the particularly type of statistical computation-transitional (conditional) probability-used by infants to solve this word-segmentation task. An artificial language corpus, consisting of a continuous stream of trisyllabic nonsense words, was presented to 8-month-olds for 3 min. A postfamiliarization test compared the infants' responses to words versus part-words (trisyllabic sequences spanning word boundaries). The corpus was constructed so that test words and part-words were matched in frequency, but differed in their transitional probabilities. infants showed reliable discrimination of words from part-words, thereby demonstrating rapid segmentation of continuous speech into words on the basis of transitional probabilities of syllable pairs.