Prolonged ethanol exposure causes central nervous system hyperexcitability that involves a loss of GABAergic inhibition. We previously demonstrated that long-term ethanol exposure enhances the internalization of synaptic GABA A receptors composed of ␣12/3␥2 subunits. However, the mechanisms of ethanol-mediated internalization are unknown. This study explored the effect of ethanol on surface expression of GABA A ␣1 subunit-containing receptors in cultured cerebral cortical neurons and the role of protein kinase C (PKC) , ␥, and isoforms in their trafficking. Cultured neurons were prepared from rat pups on postnatal day 1 and maintained for 18 days. Cells were exposed to ethanol, and surface receptors were isolated by biotinylation and P2 fractionation, whereas functional analysis was conducted by whole-cell patch-clamp recording of GABAand zolpidem-evoked responses. Ethanol exposure for 4 h decreased biotinylated surface expression of GABA A receptor ␣1 subunits and reduced zolpidem (100 nM) enhancement of GABA-evoked currents. The PKC activator phorbol-12,13-dibutyrate mimicked the effect of ethanol, and the selective PKC inhibitor calphostin C prevented ethanol-induced internalization of these receptors. Ethanol exposure for 4 h also increased the colocalization and coimmunoprecipitation of PKC␥ with ␣1 subunits, whereas PKC/␣1 association and PKC/␣1 colocalization were not altered by ethanol exposure. Selective PKC␥ inhibition by transfection of selective PKC␥ small interfering RNAs blocked ethanol-induced internalization of GABA A receptor ␣1 subunits, whereas PKC inhibition using pseudo-PKC had no effect. These findings suggest that ethanol exposure selectively alters PKC␥ translocation to GABA A receptors and PKC␥ regulates GABA A ␣1 receptor trafficking after ethanol exposure.