17 subjects diagnosed with schizophrenia and having auditory hallucinations in their case history were compared with 15 control subjects in an experiment on perceptual restoration. A tone pattern was presented, then interrupted by noise, under conditions such that the tone pattern could be heard as going on continuously (restoration). A series of 16 stimuli with a distractor of varying amplitude (noise) were presented. Healthy controls reliably reported restoration in Presentations 9 and 10. Four schizophrenics reported no restoration at all. Three of them reported restoration earlier than controls, and four others reported it later than controls and continued to report the phenomenon after a point at which no healthy controls did. Six other presented an irregular pattern of response to the phenomenon. The results are discussed with respect to the neurophysiological functioning of the auditory pathway and schizophrenic symptoms.