Purified preparations of rat liver microsomes consist of flat discoid structures, presumably vesicles. They catalyze oxidation of ethanol to acetaldehyde in the absence of alcohol dehydrogenase and catalase with a specific activity of 1.4-53 nmol acetaldehyde formed min-' (nmol cytochrome P-450)-'. The "( V / K ) isotope effect of this microsomal ethanol-oxidizing system was 1.15. This value is clearly different from those of alcohol dehydrogenase (3.0) and catalase (1.9). Particulate aldehyde dehydrogenases present in the preparation are active at unphysiologically high concentrations of aldehyde. Coincidently, the activity of the microsomal ethanoloxidizing system, was well as the " ( V / K ) isotope effect associated with it, was increased significantly. This observation confirms the enzymic nature of the reaction studied.In microsomes washed once in KCI, ethanol oxidation was catalyzed mainly by catalase, but also by the microsomal ethanol-oxidizing system, as judged from the "( V / K ) isotope effect upon the net reaction. In the presence of sodium azide alcohol dehydrogenase activity could be demonstrated. In hepatocytes from rat or pig, 4-methyl pyrazole at high concentrations reduced the rate of ethanol oxidation to 3-10%. The " ( V / K ) isotope effect upon the residual ethanol oxidation reflected activities of both catalase and the microsomal ethanoloxidizing system. The activity of this latter system was inhibited by 4-methyl pyrazole competitively with ethanol, Ki = 5.7 mM. When this inhibition is taken into account, the uninhibited membrane system activity in these cells amount to maximally 10% of the rate of ethanol oxidation in the absence of inhibitor.