The purpose of this chapter is to bring together some of the recent research that has significantly increased our knowledge of the mechanisms underlying the actions of alcohol in the body, including absorption and metabolism. One particular field of growth is that of the actions of alcohol in the brain. In the past few years there have been a number of important advances in our understanding of the mechanisms by which alcohol produces sedation, intoxication and pleasure as well as those processes which contribute to its addictive properties. Progress has also been made in unravelling the mechanisms of tolerance and physical withdrawal and these studies have also thrown light on the basis of the neurotoxic effects of alcohol. Similarly in the periphery new ideas about the toxic tissue damaging properties of alcohol have been developed.