AbstractAuditory working memory is often conceived of as a unitary capacity, with memory for different auditory materials (syllables, pitches, rhythms) thought to rely on similar neural mechanisms. One spontaneous behavior observed in working memory studies is ‘chunking’. For example, individuals often recount digit sequences in groups, or chunks, of 3 to 4 digits, and this chunking improves performance. Chunking may also operate in musical rhythm, with beats acting as chunk boundaries for tones in rhythmic sequences. Similar to chunking, beat-based structure in rhythms also improves performance. Thus, beat processing may rely on the same mechanisms that underlie chunking of verbal material. The current fMRI study examined whether beat perception is a type of chunking, measuring brain responses to chunked and unchunked letter sequences relative to beat-based and nonbeat-based rhythmic sequences. Participants completed a sequence discrimination task, and comparisons between stimulus encoding, maintenance, and discrimination were made for both rhythmic and verbal sequences. Overall, rhythm and verbal working memory networks overlapped substantially. When comparing rhythmic and verbal conditions, rhythms activated basal ganglia, supplementary motor area, and anterior insula, compared to letter strings, during encoding and discrimination. Letter strings compared to rhythms activated bilateral auditory cortex during encoding, and parietal cortex, precuneus, and middle frontal gyri during discrimination. Importantly, there was a significant interaction in the basal ganglia during encoding: activation for beat-based rhythms was greater than for nonbeat-based rhythms, but verbal chunked and unchunked conditions did not differ. The significant interaction indicates that beat perception is not simply a case of chunking, suggesting a dissociation between beat processing and grouping mechanisms that warrants further exploration.