Attention, working memory & long-term memory dysfunctions are the most commonly seen cognitive impairments in schizophrenic patients. As the cognitively beneficial effects of a treatment may have a high impact on the patient‟s quality of life, the main area of investigation is research related to the efficacy of new antipsychotics in diminishing cognitive impairments. Thus, we aim to investigate the effects of olanzapine on working memory using Eight Arm Radial Maze in mice. After overnight fasting, Swiss albino mice were given two 20 minute free exploration sessions at 24 hours interval with food pellets scattered across 8 arms. Then, mice were trained in a win-shift procedure for four consecutive days & then individual mouse moved to Delayed Non Match to Position Task (DNMTP) consisting of „Information Session‟ (Forced Four Session) followed by „Retention Session‟ (Free Eight Session) for four consecutive days. Olanzapine (0.8 mg/kg & 1.25 mg/kg i.p.) was administered 60 min before DNMTP test session. The total number of errors & latency of retention session were scored. Olanzapine significantly reduced the number of errors (1.7±0.9 & 0.8 ± 0.2) in DNMTP test session from baseline (6.3 ± 1.1 & 4.8 ± 1.7 respectively). Also time to complete the task was also significantly reduced after olanzapine from baseline, p<0.01. Olanzapine significantly improves the working memory assessed by eight arm radial maze and might improve cognitive deficits in schizophrenic patients