Thirty-four-day treatment program clients diagnosed with schizophrenia or schizoaffective disorder were randomly assigned to a computer-assisted cognitive rehabilitation (CACR) group or a wait-list Control group. CACR clients received 16 CACR sessions over an 8-week period. Measures of cognitive functioning, negative symptoms and self-esteem were administered at the beginning and end of this period. CACR clients showed greater improvement in cognitive functioning (verbal memory and attention) and negative symptoms. Symptom reduction was not mediated by raised self-esteem. CACR's effects may go beyond cognitive remediation to include some of the most disabling and refractory clinical features of schizophrenia.