Background: Some individuals exhibit symptoms that resemble schizophrenia, but these manifestations are less in the degree to those seen in schizophrenia. Such a latent personality construct has been called schizotypy. It is known that schizotypal personality traits have an impact on cognitive control and semantic processing. The present study aimed to examine whether visual verbal information processing is modulated by enhancement of top-down processes applied to different words within one phrase in subjects with schizotypal personality traits. The tasks employed were based on differences in the involvement of cognitive control in visual verbal information processing and hypothesized that subjects with schizotypal traits would demonstrate failure in top-down modulation of word processing within a phrase. Methods: Forty-eight healthy undergraduate students were enrolled in the study. Participants were screened for schizotypy with the Schizotypal Personality Questionnaire. Word combinations consisting of an attribute and a noun were used as stimuli. Participants were asked to categorize one word in a phrase and to passively read the other word in the pair. To obtain neurophysiological data during task performance, the event-related brain potential N400 was measured. Results: In the low schizotypy scores group, an increased N400 amplitude was revealed for both attributes and nouns during passive reading compared to categorization. This effect was not observed in the high schizotypy scores group; therefore, word processing was modulated weakly by the experimental task in subjects with schizotypal personality traits. Conclusions: Changes observed in schizotypy can be regarded as a failure in top-down modulation of word processing within a phrase.