Music perception and appraisal is very poor in cochlear implant (CI) subjects partly because (musical) pitch is inadequately transmitted by the current clinically used sound processors. A new sound processing scheme (F0mod) was designed to optimize pitch perception, and its performance for music and pitch perception was compared in four different experiments to that of the current clinically used sound processing scheme (ACE) in six Nucleus CI24 subjects. In the F0mod scheme, slowly varying channel envelopes are explicitly modulated sinusoidally at the fundamental frequency (F0) of the input signal, with 100% modulation depth and in phase across channels to maximize temporal envelope pitch cues. The results of the four experiments show that: (1) F0 discrimination of single-formant stimuli was not significantly different for the two schemes, (2) F0 discrimination of musical notes of five instruments was three times better with the F0mod scheme for F0 up to 250 Hz, (3) melody recognition of familiar Flemish songs (with all rhythm cues removed) was improved with the F0mod scheme, and (4) estimates of musical pitch intervals, obtained in a musically trained CI subject, matched more closely the presented intervals with the F0mod scheme. These results indicate that explicit F0 modulation of the channel envelopes improves music perception in CI subjects.