Jeffrey Gray's neuropsychological theory of the positive symptoms of schizophrenia has been highly influential by enabling a strong link between animal and human research. Central to the development and testing of this theory has been the phenomenon and paradigm of latent inhibition (LI-the retardation of learning that one stimulus predicts the occurrence of another due to pre-exposure of the first stimulus). We review findings relating to its alteration in patients with schizophrenia (acute and chronic), people high on dimensions of schizotypy and the effects of amphetamine and anti-psychotic medication in humans. We suggest that many human-LI paradigms still suffer from theoretical and practical limitations, but that recent developments are beginning to address these. Finally we explore the idea that the paradigm of Learned Irrelevance (LIRR-the retardation of learning that one stimulus predicts the occurrence of another due to pre-exposure of both stimuli but in an unrelated manner) might be used to complement studies on LI in exploring the cognitive distortions suffered by patients with schizophrenia.