Long-term Vipassana meditators sat in meditation vs. a control (instructed mind wandering) states for 25 min, electroencephalography (EEG) was recorded and condition order counterbalanced. For the last 4 min, a three-stimulus auditory oddball series was presented during both meditation and control periods through headphones and no task imposed. Time-frequency analysis demonstrated that meditation relative to the control condition evinced decreased evoked delta (2–4 Hz) power to distracter stimuli concomitantly with a greater event-related reduction of late (500–900 ms) alpha-1 (8–10 Hz) activity, which indexed altered dynamics of attentional engagement to distracters. Additionally, standard stimuli were associated with increased early event-related alpha phase synchrony (inter-trial coherence) and evoked theta (4–8 Hz) phase synchrony, suggesting enhanced processing of the habituated standard background stimuli. Finally, during meditation, there was a greater differential early-evoked gamma power to the different stimulus classes. Correlation analysis indicated that this effect stemmed from a meditation state-related increase in early distracter-evoked gamma power and phase synchrony specific to longer-term expert practitioners. The findings suggest that Vipassana meditation evokes a brain state of enhanced perceptual clarity and decreased automated reactivity.