The children in these families were compared with children who were living in demographically matched homes with either alcohol-abusing fathers (AA) or non-substance-abusing fathers. Children's lifetime psychiatric diagnoses were determined with the Schedule for Affective Disorders and Schizophrenia for Children for School-Age Children, Present and Lifetime Version (K-SADS-PL). This is a valid and reliable semistructured interview schedule designed to assess current and past episodes of psychopathology in children and adolescents according to DSM-IV criteria. The K-SADS-PL was administered to parents and the child, supplemented by other information when available. Both mothers and fathers rated their children using the Pediatric Symptom Checklist. Fathers and mothers were interviewed with the substance-use modules of the Structured Clinical Interview for the DSM-IV (SCID). This instrument was used to identify parents' substance-use disorders and to identify potential participants who met one or more of the diagnostic exclusion criteria. The study found that children who lived with DA fathers were more likely to have a lifetime psychiatric diagnosis (53 percent compared with 25 percent) in AA homes and 10 percent in non-substance-abusing homes. Compared to children in the other groups, children in DA homes were more than twice as likely to exhibit clinical levels of behavioral symptoms. These results are consistent with and extend previous research. These findings suggest the importance of developing multifaceted interventions that include a component that teaches parents the skills necessary to monitor and support children who may already exhibit clinical levels of difficulty. 4 tables and 45 references