Dopaminergic dysregulation and dysfunction have long been seen as the key factors of the onset of psychosis. The dopamine hypothesis postulates hyperactivity of subcortical dopamine release and hypoactivity of cortical dopamine transmission in schizophrenia, indicating the relationship between irregular dopamine activity and the development of positive and negative symptoms of schizophrenia. Meanwhile, psychological stressors affect the brain in multiple ways, including changing the structure of neurons and causing malfunction of the dopamine system. These changes are also critical in causing psychotic experiences. Despite there are abundant studies and findings investigating either the relationship between dopamine and schizophrenia, or the relationship between schizophrenia and stress, few of them have put these three concepts together in discussion. This paper aims at investigating how abnormal dopamine functions, stress and schizophrenia are related to each other, which helps generate a deeper and clearer understanding of the disease from a broader view. The relationship between inappropriate dopamine release and the pathophysiology of schizophrenia is discussed, particularly talks about the dopamine transmission in striatal and cortical regions of the brain, it proceeds into an investigation of the association between stress and schizophrenia from both physiological and sociological scopes, and then summarizes the current ways of treating schizophrenia provided along with the future prospect in developing treatments for this disorder.