Ethanol has been previously shown to reduce the unsaturated fatty acid content of cell membranes. It is not known, however, if the observed deleterious effects are due to ethanol itself or its metabolite, acetaldehyde. The present study was undertaken to assess the effect of acetaldehyde produced from ethanol by alcohol-deyhdrogenase-transfected Chinese hamster ovary Cells on the membrane lipids and the lipid peroxidation measured by free and bound malondialdehyde (MDA). The effects of ethanol alone was assessed in the presence of 4-methylpyrazole (4-MP), an inhibitor of alcohol dehydrogenase. After 8 days of incubation, total cellular lipids were extracted, subjected to TLC, and analyzed by gas chromatography. MDA concentration were determined by thiobarbituric acid reaction followed by HPLC detection. The level of acetaldehyde in the culture medium increased with concentration of ethanol from 5 to 20 mM as did the lipid peroxidation. Total cholesterol, phospholipids, and triglycerids all increased with increasing concentration of acetaldehyde. These effects were due to acetaldehyde as they were blocked by 4-MP. Some changes in fatty acid profiles were observed by effect of ethanol itself.