"Cocktail party" speech perception is largely studied using either linguistic or nonspeech noise maskers. Few studies have addressed how listeners understand speech during concurrent music. We used popular songs to probe the effects of familiarity and different inherent properties of background music (i.e., isolated vocals, isolated instruments, or unprocessed song) on speech recognition. Participants performed an open-set sentence recognition task in the presence of familiar and unfamiliar music maskers (-5 dB signal-to-noise ratio [SNR]) composed of the full unprocessed song, only the instrumentals, or only the vocals. We found that full songs negatively affected recognition performance more so than isolated vocals and instrumentals. Surprisingly, there was also an interaction with music familiarity; well-known music impaired performance in the homologous full song and instrumental conditions. Our results show strong effects of song component and familiarity on speech recognition ability, highlighting interactions between both physical and psychological characteristics of musical noise on task performance. Familiarity impairs speech perception when background music features the instrumentals with or without the vocals. Our findings have implications for understanding the possible facilitation (or interference) of background music during concurrent linguistic tasks including academic study in attempts to promote learning.