Part of the spectrum of two or more input signals is encoded using conventional coding techniques, while encoding the rest of the spectrum using binaural cue coding (BCC). In BCC coding, spectral components of the input signals are downmixed and BCC parameters (e.g., inter-channel level and/or time differences) are generated. In a stereo implementation, after converting the left and right channels to the frequency domain, pairs of left- and right-channel spectral components are downmixed to mono. The mono components are then converted back to the time domain, along with those left- and right-channel spectral components that were not downmixed, to form hybrid stereo signals, which can then be encoded using conventional coding techniques. For playback, the encoded bitstream is decoded using conventional decoding techniques. BCC synthesis techniques may then apply the BCC parameters to synthesize an auditory scene based on the mono components as well as the unmixed stereo components.