We present an empirical study of the applicability of Probabilistic Lexicalized Tree Insertion Grammars (PLTIG), a lexicalized counterpart to Probabilistic Context-Free Grammars (PCFG), to problems in stochastic natural-language processing. Comparing the performance of PLTIGs with non-hierarchical N-gram models and PCFGs, we show that PLTIG combines the best aspects of both, with language modeling capability comparable to N-grams, and improved parsing performance over its non-lexicalized counterpart. Furthermore, training of PLTIGs displays faster convergence than PCFGs.