The aim of this study was to identify whether specific deficits in cognitive processing are present in schizophrenia and whether these are related to the volume of temporal and limbic structures. Twenty-seven schizophrenic outpatients were compared with 19 matched control subjects. Compared with control subjects, patients performed complex tasks disproportionately worse than they performed simple tasks. No group differences were found with regard to temporal and limbic volume. Volume of the parahippocampal gyrus was correlated with cognitive performance. The findings are interpreted as evidence for a dysfunction in the maintenance of task-relevant information and the inhibition of irrelevant information.