It has been postulated that deficits in certain areas of cognitive functioning among children of alcoholics may contribute to their increased risk for developing alcoholism and other substance abuse disorders. In this chapter, the recent evidence for this hypothesis is critically reviewed. Studies citing differences in cognitive functioning between persons at high risk versus those at low risk for alcoholism are presented as well as those studies that have failed to demonstrate differences in cognitive abilities. On balance, the evidence in support of variations in cognitive abilities at risk factors for the development of alcoholism is not strong. The equivocal nature of the literature may be due to a variety of issues related to the design of studies examining risk factors for alcoholism, to the variability of definitions of family history positive used, to the failure to adequately control potentially confounding subject variables, and to the improper analysis of data. Recommendations are made for future studies examining neuropsychological functioning in "at risk" samples.