There is clear evidence that there is a link between cognitive and social functioning in schizophrenia. However, the exact nature of that association is not well established. In this study, three groups were included: 50 first episode of psychosis (FE) subjects, 53 multi-episode schizophrenia subjects (ME) and 55 non-psychiatric controls (NPC). Subjects were assessed on measures of social functioning and a comprehensive cognitive battery. FE subjects were assessed on admission to a comprehensive FE program and one year later. The ME and NPC group had two assessments one year apart. Both the FE and ME subjects were clearly impaired relative to NPCs in cognition and social functioning. In both the patient group and the NPC group cognition predicted performance on a measure of social problem solving and one measure of social functioning but not the other. This study supports the association between cognition and social functioning but indicates that this is a function of how social functioning is conceptualized and assessed.