Schemas are mental frameworks that help organize and interpret information based on past experiences. They play a crucial role in cognitive processing by allowing us to process vast amounts of information efficiently, guiding our behavior and expectations, and filling in gaps in memory. Schemas also influence perception, sometimes leading to biases or errors, and aid in learning and decision-making by providing a mental template for understanding new concepts. While schemas enhance cognitive efficiency, they can also lead to distortions, such as false memories and stereotyping.