Schizophrenia (SCZ) is a disorder characterized by psychotic symptoms and cognitive deficits. Although the biology underlying subjective experiences is difficult to study, abnormalities in electroencephalographic (EEG) measures offer a means to dissect potential circuit and cellular changes in brain function. EEG is indispensable for studying cerebral information processing due to the introduction of techniques for the decomposition of event-related activity into its frequency components. Specifically, gamma activity (30–80 Hz) is thought to underlie cognitive function and may be used as an endophenotype to aid in diagnosis and treatment of SCZ. In this review, we address evidence indicating that there is increased resting state gamma power in SCZ. Next, we examine underlying circuit mechanisms that could lead to this increase. Finally, we address how modeling this aspect of the illness in animals may help treatment development as well as provide insight into the etiology of SCZ.