Language and thought disorders are core symptoms in schizophrenia. We therefore studied language comprehension processes in patients with schizophrenia and control subjects during a sentence processing paradigm using event-related potentials (ERPs). In the ERP, assignment of syntactic structure to a string of words is reflected by an early left anterior negativity (ELAN) at about 80 ms after stimulus onset. Integration of syntactic and semantic information into a coherent representation is indexed by a positive potential at 600 ms (P600). Amplitudes of the ELAN and the P600 components are higher for grammatically incorrect sentences. Semantic processes are associated with a negative deflection peaking at 400 ms (N400). N400 amplitude is higher in semantically incongruent sentences. Nineteen patients with DSM IV schizophrenia and 19 healthy controls were presented with correct, semantically incorrect (semantic mismatch) and grammatically incorrect sentences (syntactic mismatch). Syntactic mismatch elicited an ELAN component in both subject groups. However, only controls but not patients with schizophrenia exhibited a P600 syntactic mismatch effect. Semantic mismatch was associated with a larger N400 potential which did not differ between groups. These results suggest that patients with schizophrenia are not impaired in syntactic structure assignment as reflected by the ELAN, but show deficits in semantic-syntactic integration processes underlying the P600.