Cognitive impairment is a relatively frequent aspect of schizophrenia. Deficits are most prominent in tasks involving attention, memory, and executive function. Although some research suggests that deterioration is progressive, these deficits appear to be relatively stable over time. Imaging and biochemical studies show that schizophrenia is characterized by a number of morphological, hemodynamic, and neurochemical abnormalities within systems integrating the cortex, temporal lobes, and various limbic structures. Neurochemical assays suggest that the neurotransmitters serotonin, dopamine, and glutamate play a significant role in the disease-associated decrement. Cognitive impairment in schizophrenia impedes psychosocial performance and eventual reintegration into society and is therefore an especially relevant target in the development of new therapeutic modalities. Atypical agents, such as clozapine and olanzapine, hold special promise in this area.