It has been proposed that certain psychotic symptoms associated with schizophrenia reflect a deficit in the ability to appreciate other people's mental states (Frith, 1992). This notion is tested using a newly devised task examining the capacity to infer intentions behind indirect speech. The findings support the notion that some patients with schizophrenia have difficulties with tasks requiring 'theory of mind' skills and that this deficiency is symptom specific. The findings are discussed with reference to the cognitive skills which may be involved in the performance of tasks requiring social inferences.