Visual context processing was examined in relation to schizotypy in a large nonclinical university population. Schizotypal status was assessed with the Schizotypal Personality Questionnaire (SPQ) [Schizophr. Bull. 17 (1991) 555]. Schizotypal (n=32) and non-schizotypal (n=37) subjects were tested on a contour integration task (where context processing is necessary for good performance) and a visual size perception task (where context processing impairs accurate performance). In addition, a short form of the Thought Disorder Index (TDI) [Psychol. Assess. 5 (1993) 75] was administered to 28 schizotypal subjects. Thought disordered schizotypal subjects showed significantly impaired performance on the contour integration task but more accurate performance on the visual size perception task. These results support the hypothesis that deficits in visual context processing are the manifestation of a larger disturbance of cognitive coordination in schizotypy and schizophrenia.