Cognitive deficits associated with frontal lobe dysfunction are a determinant of long-term disability in schizophrenia and are not effectively treated with available medications. Clinical studies show that many aspects of these deficits are transiently induced in healthy individuals treated with N-methyl-D-aspartate (NMDA) antagonists. These findings and recent genetic linkage studies strongly implicate NMDA receptor deficiency in schizophrenia and suggest that reversing this deficiency is pertinent to treating the cognitive symptoms of schizophrenia. Despite the wealth of behavioral data on the effects of NMDA antagonist treatment in humans and laboratory animals, there is a fundamental lack of understanding about the mechanisms by which a general state of NMDA deficiency influences the function of cortical neurons. Using ensemble recording in freely moving rats, we found that NMDA antagonist treatment, at doses that impaired working memory, potentiated the firing rate of most prefrontal cortex neurons. This potentiation, which correlated with expression of behavioral stereotypy, resulted from an increased number of irregularly discharged single spikes. Concurrent with the increase in spike activity, there was a significant reduction in organized bursting activity. These results identify two distinct mechanisms by which NMDA receptor deficiency may disrupt frontal lobe function: an increase in disorganized spike activity, which may enhance cortical noise and transmission of disinformation; and a decrease in burst activity, which reduces transmission efficacy of cortical neurons. These findings provide a physiological basis for the NMDA receptor deficiency model of schizophrenia and may clarify the nature of cortical dysfunction in this disease.N -methyl-D-aspartate (NMDA) receptors are increasingly implicated in schizophrenia. The majority of genes that have so far been linked to increased susceptibility to develop schizophrenia can modulate NMDA receptor-mediated signal transduction (1, 2), suggesting that NMDA receptors are a critical component of genetic vulnerability to develop schizophrenia. Recreational or investigator-administered exposure to drugs that have antagonist activity at NMDA receptors produces a transient state of psychosis and schizophrenia-like cognitive deficits (3-5). In fact, double-blind clinical studies suggest that the cognitive deficits produced by NMDA antagonists in healthy volunteers are nearly identical to the deficits observed in patients with schizophrenia (6). Based on these pharmacological and genetic linkage studies, the NMDA antagonist treatment is considered a mechanistically relevant model for cognitive deficits of schizophrenia (7-10). Understanding the impact of this treatment on cellular mechanisms that support the expression of abnormal cognition is critical for understanding the impact of an underlying NMDA dysfunction on the disease process and for defining better treatments. However, despite a large body of literature that has characterized the behavioral aspects of...