The study confirms existing research findings that alcohol use is lower for African-Americans relative to White adolescents and for males and females. However, it did not find differences for African-Americans and Whites on the incidence of heavy drinking and drug use. In addition, the results revealed that the effects of family and peers on alcohol use were different for African-American and White youth. African-American females are less influenced than White females by friends who drink. African-American females are less influenced by peers, and African-American males are more influenced by supportive families than are Whites. Overall, differences in alcohol use are almost entirely explained by differences in process, in particular, the influence of peers and the family. Current research shows that the relationship between race and/or ethnicity and substance use is complex. This study used the Add Health Survey, a large school-based study of the health-related behaviors of adolescents in grades 7 to 12, to examine alcohol and drug used by race and/or ethnicity and to explore how differences in composition and process might produce differences in use. Tables, references