Deficits in auditory sensory memory at the electrophysiological level as indexed by mismatch negativity and those in auditory verbal memory at the neuropsychological level have been independently demonstrated in previous studies of schizophrenia. We predicted a specific association between these indices in schizophrenia. Mismatch negativities elicited by change in tone duration and phoneme duration were recorded in 23 schizophrenia patients, who were also evaluated for auditory verbal memory and executive function. Lower amplitude of mismatch negativity under the phoneme-duration condition was significantly associated with worse verbal memory. Phoneme-duration mismatch negativity was not correlated with executive function, nor was tone-duration mismatch negativity correlated with verbal memory. These results suggest that electrophysiological auditory sensory memory dysfunction underlies the basis for neuropsychological auditory verbal memory deficits in schizophrenia.