This study tested 20 schizophrenia patients to examine the relationship between facial emotion recognition deficits and visual system functioning. The results showed that schizophrenia patients had impaired contrast sensitivity in the magnocellular visual pathway, which processes low spatial frequencies, compared to the parvocellular pathway. Patients also showed significant impairment in recognizing and differentiating facial emotions. Recognition of happy faces was less impaired than other emotions. Recognition deficits correlated with impaired contrast sensitivity in the magnocellular pathway, suggesting visual system dysfunction contributes to difficulties processing facial emotions in schizophrenia.