This study evaluated deficits in visual perceptual organization in schizophrenia over the course of inpatient treatment, in relation to the remission of particular psychotic symptoms. Disorganized (n=14) and non-disorganized (n=33) schizophrenia patients were tested upon admission to an inpatient psychiatric unit, and again after 3 weeks of treatment, on two measures of visual perceptual organization. Performance of schizophrenia patients was compared to groups of patients with psychotic disorders other than schizophrenia (n=19) and non-psychotic psychiatric disorders (n=25). Symptom ratings were collected at both assessment points. Deficits in visual perceptual organization were observed for both tasks in disorganized schizophrenia patients at index and these deficits improved during the course of treatment. Moreover, improvement in visual perceptual organization correlated significantly with reductions in disorganized symptoms in the schizophrenia group. We interpret these data as further support for the hypothesis that the disorganization syndrome in schizophrenia reflects a widespread deficit in the cognitive coordination of contextually related stimuli, leading to dysfunctional organization of stimulus features in vision, thought and language.