Neuroinflammation, particularly astrocyte reactivity, are increasingly linked to schizophrenia (SCZ). Yet, the crosstalk between astrocytes and microglia in SCZ, especially under pro-inflammatory conditions, remains unclear. Here, we apply human induced pluripotent stem cells (hiPSCs) to compare the reactivity of astrocytes from individuals with SCZ and neurotypical controls, towards resolving how patient-derived astrocytes affect microglial biology. TNF-ɑ stimulation of SCZ astrocytes, relative to control astrocytes, trigger an increase in expression of pro-inflammatory cytokines and CX3CL1, a chemokine involved in chemotaxis and synapse pruning. Transcriptomic analyses reveal that TNF-ɑ-stimulated SCZ astrocytes promote the downregulation of biological processes associated with phagocytosis and chemotaxis in induced microglial-like cells (iMGs). Interestingly, TNF-ɑ-stimulated SCZ astrocytes lead to reduced synaptoneurosomes engulfment by iMGs. Alternatively, TNF-ɑ-stimulated astrocytes (control and SCZ) induce microglial migration in a CX3CR1-dependent manner. Surprisingly, TNF-ɑ-stimulated SCZ astrocytes do not promote a more pronounced microglial chemotaxis, despite secreting twice as much CX3CL1 compared to stimulated control astrocytes, possibly due to lower CX3CR1 plasma membrane content after exposure to ACM from individuals with SCZ. Altogether, these findings suggest that astrocytes contribute to SCZ pathology by altering normal microglial function.