Two experiments investigated whether phonological representations are activated in the processing of anaphors in reading, and if they are, whether they play a role in the initial (first-pass) processing of the sentence or in review (second-pass) processes. Subjects made sentence acceptability judgements for sentences that contained either verb-gaps or indefinite and personal pronouns (overt anaphors). All sentences contained homophones. Half of the semantically unacceptable sentences were phonologically plausible if the homophones were inserted in the gap (e.g. The children sleighed in the winter, and the murderer in cold blood) or used as the referent of the pronoun (e.g. There is a sale on at the store and I have one at the boat). The other half of the semantically unacceptable sentences were phonologically implausible. In both experiments, half of the subjects saw the sentences under normal viewing conditions (whole sentence condition); for the other half of the subjects the words of each sentence were presented sequentially in the centre of the video screen at the rate of 250 msec/word (RSVP condition). A large proportion of the phonologically implausible sentences in the first experiment contained phrases in the second clause which resulted in semantic “oddities” (e.g. The children sleighed in the winter, and the murderer in the jar); the sentences in Experiment 2 did not contain such oddities. In Experiment 1 subjects made more errors on the phonologically plausible than implausible unacceptable sentences with both verb-gaps and pronouns in the whole sentence but not in the RSVP condition. There was no effect of phonological plausibility in Experiment 2. As the effect of phonological plausibility was only seen in the whole sentence condition, and only when the sentences contained semantic oddities, these data suggest that phonological information was not used in the first-pass analysis of the sentence, but rather when the subject re-read the sentence to find the referent.