The biological underpinnings and the pathological lesions of psychiatric disorders are centuries-old questions that have yet to be understood. Recent studies suggest that schizophrenia and related disorders likely have their origins in perturbed neurodevelopment and can result from a large number of common genetic variants or multiple, individually rare genetic alterations. It is thus conceivable that key neurodevelopmental pathways underline the various genetic changes and the still unknown pathological lesions in schizophrenia. Here, we report that mice defective of the nicastrin subunit of ␥-secretase in oligodendrocytes have hypomyelination in the central nervous system. These mice have altered dopamine signaling and display profound abnormal phenotypes reminiscent of schizophrenia. In addition, we identify an association of the nicastrin gene with a human schizophrenia cohort. These observations implicate ␥-secretase and its mediated neurodevelopmental pathways in schizophrenia and provide support for the "myelination hypothesis" of the disease. Moreover, by showing that schizophrenia and obsessive-compulsive symptoms could be modeled in animals wherein a single genetic factor is altered, our work provides a biological basis that schizophrenia with obsessivecompulsive disorder is a distinct subtype of schizophrenia.Psychiatric diseases such as schizophrenia, obsessive-compulsive disorder, attention deficit hyperactivity disorder, and autism exert devastating impact on the well-being of those affected and the society at large. The clinical symptoms and etiologies of these diseases are complex, obscure, and often overlap, and characteristics of these diseases can only be partially and incompletely captured in existing animal models. In contrast to classical neurological disorders such as Alzheimer disease, psychiatric disorders do not display overt neuropathological lesions but rather are attributed to changes in synaptic transmission, neuronal homeostasis, and neuronal networks. Both genetic and environmental factors contribute to these changes, which can result from multiple, individually rare genetic alterations or from large numbers of common genetic variants. Often, psychiatric disorders have their origins in perturbed neurodevelopment. It is therefore conceivable that key neurodevelopmental factors and pathways contribute to their neurobiological underpinnings.Several important neurodevelopmental pathways are controlled by ␥-secretase, a multisubunit, multitransmembranespanning proteolytic complex that cleaves a host of type I transmembrane proteins within the lipid bilayer (1). Although ␥-secretase is perhaps best known for its role in cleaving the amyloid precursor protein in Alzheimer disease, key ␥-secretase substrates have also been implicated in schizophrenia, most notably neuregulin-1 (Nrg1) and its receptor ErbB4 (2, 3). A recent study also demonstrated a functional interaction between the amyloid precursor protein and disrupted-in-schizophrenia-1 in cortical development (4). Moreover, multiple ...