Facial affect discrimination and identification were assessed in 86 clinical high-risk individuals and compared with 50 individuals with first-episode psychosis, 53 with multi-episode schizophrenia and 55 non-psychiatric controls. On the identification task the non-psychiatric controls performed significantly better than all other groups, and on discrimination significantly better than both patient groups. Deficits in facial affect recognition appear to be present before the onset of psychosis and may be a vulnerability marker.