DSM IV preserves the boundary between schizoaffective disorder and schizophrenia, yet validation of the former condition remains incomplete. The prevalent view that schizoaffective disorder is a less serious condition than schizophrenia suggest that cognitive disturbance might be less severe and possibly different from that found in schizophrenia. We investigated a well-characterized cognitive difficulty in schizophrenia, the relative lack of gain in verbal recall when context is increased, in samples of patients and normal controls. Subjects with schizophrenia (n = 19) were individually matched for age, sex, and recall performance with patients diagnosed with schizoaffective disorder (n = 19) and major depression (n = 19); and with normal controls (n = 19). Patients were also matched on duration of illness. The results indicate that schizophrenic subjects attain smaller gains in recall when context is increased compared to depressed and normal controls, a finding consistent with previous results. Schizophrenic and schizoaffective subjects, however, did not differ in recall gain on this task. We conclude that schizoaffective subjects cannot be distinguished from schizophrenic subjects on this cognitive feature.