In recent years, the goal of treatment for individuals with schizophrenia has shifted from symptom control to functional recovery. For recovery to occur, the substantial cognitive impairments associated with this disorder must be addressed. Advances in neuroscience have paved the way for the development of more effective behavioral and pharmacologic treatments. Behavioral interventions such as cognitive training are tapping into the innate plasticity and adaptive qualities of the brain. Emerging pharmacologic treatments are targeting new neurotransmitters and systems, such as the glutamatergic system and the nicotinic-cholinergic system, which are involved in the cognitive and sensory deficits that lead to impairment. The best chances for recovery will most likely occur by combining behavioral and pharmacologic interventions.