We examined automatic spatial alignment effects evoked by handled objects. Using color as the relevant cue carried by an irrelevant handled object aligned or misaligned with the response hand, responses to color were faster when the handle aligned with the response hand. Alignment effects were observed only when the task was to make a reach and grasp response. No alignment effects occurred if the response involved a left−right key press. Alignment effects emerged over time, becoming more apparent either when the color cue was delayed or when relatively long, rather than short, response times were analyzed. These results are consistent with neurophysiological evidence indicating that the cued goal state has a modulatory influence on sensorimotor representations, and that handled objects initially generate competition between neural populations coding for a left- or right-handed action that must be resolved before a particular hand is favored.