Although "simple" mismatch negativity (sMMN) to stimulus parameter changes is robustly reduced in long-term schizophrenia (Sz), it is much less reduced in individuals at their first psychotic episode in the schizophrenia-spectrum (FESz). "Complex" MMN (cMMN) reflecting pre-attentive acoustic pattern analysis is also markedly reduced in Sz, but is little studied in FESz. The computational complexity of pattern analysis reflected in cMMN may more greatly stress auditory processing, providing a more sensitive measure of auditory processing deficits at first break. If so, cMMN would provide information about the underlying pathophysiology early in disease course, and may serve as a biomarker for pathology in the Sz prodrome. Twenty-two FESz individuals were compared to 22 volunteer healthy controls (HC) on sMMN and cMMN tasks. For sMMN, pitch-and duration-deviants were presented among standard repetitive tones. For cMMN, repeated groups of 3 identical tones were presented with occasional (14%) groups including an extra identical 4th tone deviant. FESz did not show reductions of pitchdeviant (Cohen's d = 0.08) or duration-deviant MMNs (d =-0.02), but showed large reduction in extra-tone cMMN (d = 0.83). Reduced cMMN was associated with poor social functioning. Reduction in cMMN but not in sMMNs in FESz suggests impairments in late perceptual pattern processing. cMMN is sensitive to subtle pathology and functioning early in disease course which may, in turn, impact social functioning. Future studies in clinical high risk individuals are needed to determine whether this putative biomarker of disease presence is sensitive to the prodromal stage of schizophrenia.