This article describes the modern state of problem social cognitive deficits in schizophrenia. Different theoretical positions of investigators about these dysfunctions have predicted many interesting results and models. This article brings together the cutting-edge work of distinguished investigators who have developed and tested social cognitive models of schizophrenia. Social skills, theory of mind skills, emotion's recognition, and understanding of social situations are seriously impaired in persons with schizophrenia. The authors review the evidence for the importance of social cognition in the understanding of schizophrenia.