Previous research has shown that music exposure can impair a wide variety of cognitive and behavioural performance. We investigated whether this is the case for source memory. Forty-one younger adults and 35 healthy elderly were required to retain the location in which pictures of coloured objects were displayed. On a subsequent recognition test they were required to decide whether the objects were displayed in the same location as before or not. Encoding took place (a) in silence, (b) while listening to street noise, or (c) while listening to Vivaldi's "Four Seasons". Recognition always took place during silence. A significant reduction in source memory was observed following music exposure, a reduction that was more pronounced for older adults than for younger adults. This pattern was significantly correlated with performance on an executive binding task. The exposure to music appeared to interfere with binding in working memory, worsening source recall.