This paper introduces a fifth-order adaptive dynamical system model represented as a self-modelling network model to understand the role of epigenetic factors in developing schizophrenia, particularly about the occurrence of false memories. Schizophrenia, affecting a significant portion of the global population, presents complex challenges due to its symptoms across cognitive, emotional, and social domains. Central to this paper is the exploration of epigenetic influences on the development of schizophrenia, with a focus on how these epigenetic factors contribute to the generation of false memories, a notable symptom of the disorder. The model assumes that early adverse experiences significantly affect hippocampal development, which is crucial for memory processes. By employing a fifth-order adaptive dynamical system model represented as a self-modelling network, this paper examines the intricate dynamics between genetic predispositions, environmental factors, and epigenetic modifications in schizophrenia. The model’s sophistication allows for a nuanced understanding of the gene-environment interactions, particularly highlighting the role of early-life trauma in shaping lifelong cognitive outcomes. This approach offers a comprehensive framework for analyzing the multifaceted nature of schizophrenia, contributing to a deeper understanding of its etiology and progression.