Impairment in social functioning has been extensively documented in psychotic and addictive disorders. Over the last decade, considerable research has focused on social cognition, which is thought to facilitate skillful social interactions and is, therefore, considered a potential determinant of social dysfunction among individuals with these disorders. However, despite the important implications these deficits have for social functioning, potential neural mechanisms that might underlie these deficits have not been elucidated. Our research employs transcranial magnetic stimulation (TMS) and magnetoencephalography (MEG) techniques to better understand the mechanisms that underlie these processes. Research supported by a NARSAD Independent Investigator Grant from the Brain & Behavior Research Foundation (22017), by the Israel Science Foundation (ISF) for scientific research and development (621/14), and by the Israel Anti-Drug Authority.