The sense of humor has a positive influence on mental and social functioning of humans by supporting interpersonal competences and effective coping with difficult situations. The aim of this study was to present research conducted to this date and concerning processing of humoristic content by people with schizophrenia in relation to cognitive deficits associated with this illness and their neurobiological background. Understanding of humor and its effective use require many linguistic and extralingustic skills, including processing of signals from social environment, such as correct recognition of emotional messages, understanding of a context of a humoristic situation, or drawing correct conclusions on a mental status of other people. An efficient use of the metaphorical language allows experiencing amusement resulting from inaccuracies, different semantic interpretations, irony, and sarcasm. A tendency for excessive concretism reflected in problems with understanding nonliteral content and semantically complex language structures, as well as other cognitive deficits observed in schizophrenia patients, frequently hinder the use of humoristic messages. Better understanding of mechanisms controlling the effective use of humor may help to develop therapeutic tools to improve the communication efficiency of schizophrenia patients, as well as positively influence their social functioning.