Auditory verbal hallucinations (AVH) are experienced by many individuals with schizophrenia (SZ), a neurodevelopmental disease that encumbers the quality of life and psychosocial outcome of those afflicted by it. While many hypotheses attempt to better define the etiology of AVHs in SZ, their neural profile and its moderation by current neuroleptics remains limited. The Mismatch Negativity (MMN) is an event related potential (ERP) measured from electroencephalographic (EEG) activity during the presentation of a deviance detection auditory paradigm. The neural regions and activity underlying the generation of the MMN include the primary auditory cortex and the prefrontal cortex which are regions also found to be activated during the experience of AVHs. Decreased MMN amplitudes have been robustly noted in SZ patients during the presentation of MMN tasks using auditory tones. However, the MMN generation to speech stimuli has not been extensively examined in SZ nor in relation to AVHs. The primary objective of this study was to examine the MMN to five speech-based deviants in SZ patients and healthy controls. Second, we assessed MMN features with AVH characteristics in 19 SZ patients and 21 HC. While AVH features did not correlate with measures of MMN, we found decreased MMN amplitudes to speech-based frequency and vowel change deviants in SZ patients compared to HC potentially reflecting deficiencies in basic speech processing mechanisms.