Deficient sensory gating (SG) and cognition in schizophrenia are associated with functional outcome and offer therapeutic targets as they are linked to the altered function/expression of the α7 nicotinic acetylcholine receptors (nAChR). This study analyzed the effects of CDP-Choline, an α7 nAChR agonist, on SG and cognition in a sample of chronic schizophrenia patients. Using a randomized, placebo controlled, double-blind design the dose dependent (500 mg, 1000 mg, 2000 mg) and baseline SG dependent (deficient vs. normal suppressors) effects of CDP-Choline were analyzed using the P50 index of SG and a computerized cognition test battery. CDP-Choline improved SG (500 mg) in the deficient suppressor subgroup by increasing suppression of the S2 P50 amplitude. No positive effects of CDP-Choline on cognition were observed. These findings tentatively support α7 nAChR dysfunction in the expression of SG deficits and support further trials with CDP-choline to asses the effects of sustained α7 nAChR activation.