BACKGROUND: Among people with schizophrenia (PSZ), reduced mismatch negativity (MMN) is conceptualized as evidence of disrupted prediction error signaling that underlies positive symptoms. However, this conceptualization has been challenged by observations that MMN and positive symptoms are often uncorrelated. In the current study, we tested the hypothesis that reduced MMN is associated with the presence of hallucinations and delusions specifically rather than the presence of a psychiatric illness. A second aim was to determine whether the strength of the association with positive symptoms increases for indices that reflect predictions at higher levels of abstraction. METHODS: Fifty-six PSZ, 34 nonclinical voice hearers, and 48 healthy comparison subjects (HCs) completed 2 MMN paradigms: one with a simple duration deviant type, and one with a higher-level, pattern-violation deviant type. We also measured the repetition positivity, which reflects the formation of auditory memory traces. RESULTS: We observed that although PSZ exhibited the expected pattern of significantly reduced duration MMN and reduced pattern-violation MMN at the trend level compared with HCs, nonclinical voice hearers exhibited a pattern of duration MMN and pattern-violation MMN amplitude that was statistically similar to that of HCs ( CONCLUSIONS: These results indicate that the MMN as a prediction error signal does not reflect processes relevant for the manifestation of hallucinations and delusions.