Deficits in social functioning are prevalent in individuals with schizophrenia and can often be as debilitating as the illness itself. Recent research has suggested that problems in social functioning can be seen long before the onset of schizophrenia and are generally present throughout the course of the disease. Recent literature on social functioning is critically reviewed for high-risk groups, first-episode psychosis, and later schizophrenia. Deficits in social functioning begin as early as childhood and often continue throughout the course of schizophrenia. However, social functioning can stabilize or even improve later in the course of the illness. Implications and directions for future research are discussed.