Motion processing represents a perceptual domain in which dynamic visual information is encoded to support the perception of movement. Research over the last decade has found a variety of abnormalities in the processing of motion information in schizophrenia. The abnormalities span from discrimination of basic motion features (such as speed) to integration of spatially distributed motion signals (such as coherent motion). Motion processing involves visual signals across space and time and thus presents a special opportunity to examine how spatial and temporal information is integrated in the visual system. This article surveys the behavioral and neuroimaging studies that probe into the spatial integration of motion information in schizophrenia. An emerging theme from these studies points to an imbalanced regulation of spatial interaction processes as a potential mechanism mediating different levels of abnormal motion processing in schizophrenia. The synthesis of these mechanism-driven studies suggests that further investigation of the neural basis and functional consequences of this abnormal motion processing are needed in order to render a basic biomarker for assessment and intervention of cognitive dysfunction in this mental disorder.