After being trained, the baboons were able to make this distinction, despite not being capable of reading.
The results suggest the ability to recognise words could more closely relate to object identification than linguistic skill.
The study, completed by Dr John Grainger and Dr Joel Fagot from the Aix-Marseille University was published in the journal Science.
"It was by no means a foregone conclusion that the baboons would be able to master our word-non-word discrimination task, so we were quite excited about the simple fact that they did succeed," said Dr Grainger.
The researchers tested a group of Guinea baboons in a specially built facility at the university.
"In this research, the animals are completely free to participate, and are automatically identified by the test computers when they quit their social group to voluntarily enter one of the 10 possible test systems," explained Dr Fagot who designed the system.
Inside the test booths the baboons were presented with a computer screen that displayed either a four-letter word or a nonsensical jumble of letters.
To earn a treat from the automated system, they had to correctly touch either a plus sign to signify a non-word or an oval for a word.
- Baboons are Old World monkeys found across Africa and Arabia
- They live live in large social groups, known as troops, numbering up to 500 individuals
- There are five different species, of which the Guinea baboon is the smallest
One in particular, named Dan, could recognise up to 300 words correctly.
"Cognitive abilities vary among humans too, and it is not so surprising that differences emerge between the individual [baboons]," said Dr Fagot.
Dr Grainger told BBC Nature that recognising letter sequences - previously considered a fundamental "building block" of language - could be related to a more simple skill.
"The baboons use information about letters and the relations between letters in order to perform our task... This is based on a very basic ability to identify everyday objects in the environment," he said.