Background and Objectives: This study aimed to develop and validate a modified version of the Speech in Noise Sentence Test in Kannada, which would be appropriate for testing the speech comprehension ability of children aged 8-12 years. Subjects and Methods: A total of 120 sentences were chosen from 200 familiar sentences and split into four lists. Continuous discourse was used as a competition or distractor. Using MATLAB, the target stimulus was presented at 0-degree azimuth while the distractor’s location varied (+90° and -90° azimuth). The test was programmed to dynamically adjust the signal-to-noise ratio (SNR) based on participants’ responses. After initial validation, a pilot study was conducted with 60 typically hearing children aged 8 to 12 years. Results: The SNR50 scores significantly improved when the distractor and target sentences were spatially separated across all groups. Age had a significant influence on the spatial separation scores. The test-retest reliability was excellent. Conclusions The developed stimuli effectively measured spatial separation, and the normative and psychometric analyses demonstrated reliable outcomes.