Study participants were 115 (60 male and 55 female) adolescents aged 12-19 who were recruited for the study through alternative schools, community events, a community psychologist, and Latino groups at a Midwestern university. Self-report questions focused on demographics, alcohol consumption, peer alcohol use, and alcohol expectancies. The latter involved subjects' views of the various positive and negative effects of alcohol use. One study instrument measured subjects' cultural identification to both Mexican and Anglo cultures. Findings indicate that a higher level of peer alcohol use was associated with a higher level of respondent's alcohol use. Also, adolescents' expectancies about the effect of alcohol on their social behavior mediated the relationship between peer alcohol use and respondent alcohol use. These findings support earlier research that suggested the importance of peers as role models for Latino adolescent alcohol use. Acculturation did not moderate the relationship between peer and respondent alcohol use. These findings suggest that interventions designed to reduce the high levels of alcohol use among this population should focus not only on the individual alcohol user, but also the adolescent's peer group. The adolescent's orientation toward his/her peer group's behavior offers the opportunity for cultivating positive behaviors as well as negative behaviors. Suggestions are offered for future research. 3 tables and 46 references