An active compound in cannabis plants, once isolated, could be used to treat symptoms of schizophrenia according to findings of a new study.

Researchers at the Illawarra Health and Medical Research Institute (IHMRI) have been investigating what effect Cannabidiol has on the mental illness.

Cognitive and negative symptoms of schizophrenia include social withdrawal and blunted emotional expression.

Previous studies have shown the isolated compound can improve cognition in illnesses like Alzheimer's disease and stroke.

Using a rodent model of schizophrenia, the research team found cannabidiol was able to restore recognition, working memory and social behaviour.

University of Wollongong PhD candidate Ashleigh Osborne said the findings suggested Cannabidiol could be used as a pharmaceutical drug.

"We wanted to see if Cannabidiol could alleviate the symptoms of schizophrenia that aren't addressed by current antipsychotic drugs," Ms Osborne said.

"This is really important because current antipsychotic drugs don't address the cognitive deficits, which approximately 80 per cent of patients with schizophrenia experience."

"Also antipsychotic drugs come with a range of negative side effects and Cannabidiol showed no weight gain side effects."

The laboratory study carried out by IHMRI compared treated rats to untreated rats.

Ms Osborne said more research was needed before clinical trials could begin.

"This is the first study to prove Cannabidiol can be used to treat symptoms of schizophrenia that aren't addressed by current medications," she said.

"These findings are really promising but further research is needed to see if these findings translate to people suffering from schizophrenia.

"Ultimately, we hope that these findings lead to new improved medications."

The experimental findings have been recently published in Nature journal Neuropsychopharmacology.