I'm trying to go overseas with dependents. Our passport just got here. One of my dependents place of birth is wrong. Can they still travel?

In the long run you should get it fixed, but in the meantime, you can fly with it. They're just going to scan it, not verify place of birth.

SGT,
You want to get that issue resolved prior to entering another country, if you don't you run the risk of not being able to return back home. Just think when you're in another country you have to abide by their rules. Have you heard of the saying when in Rome you act like the Romen's... Please don't leave without taken care of this it's really important. All the best....

As long as the place of birth is in the correct country, it's probably not an immediate problem. Foreign immigration officials may not know anything about US geography. San Francisco and San Antonio are indistinguishable to them. Most every state has a Springfield. They won't care as long as the passport scans correctly. You should contact the Department of State to correct the error someday.