The relationship of concept formation abilities to the presence or absence of delusions in schizophrenic disorders was investigated. Twenty-six schizophrenic patients and 14 normal individuals were administered a short form of the Booklet Category Test (BCT). Patients were grouped into those with and without delusions. It was hypothesized that the delusional group would perform significantly better on the BCT (obtain lower error scores) than the nondelusional group. Normal and delusional groups obtained significantly lower BCT error scores than the nondelusional group, even when differences in IQ scores were statistically partialled out. The two schizophrenic groups also differed significantly on BCT error scores with the delusional group performing better than the nondelusional group.