OBJECTIVES::  To determine the prevalence of alcohol use and identify the magnitude of alcohol-related health problems in Gondar town, Ethiopia. METHODS::  A community-based cross-sectional study was conducted from February to May 2013. A multistage random sampling technique was adopted and data was collected using a pretested, self-administered questionnaire. Four hundred households were approached and one individual from each was invited to participate in the survey. The collected data was coded, analysed using SPSS computer software package version 22.0. RESULTS::  Three hundred ninety individuals (97.50%) have agreed to complete the survey. Of these respondents, 250 (65.4%) were alcohol users. Among the users, 14.0% were light frequent drinkers, 5.0% were occasional drinkers, 44.0% were moderate drinkers, and 37.0% were heavy drinkers. Of the total 390 sample, 174 reported that they experience some health related comorbid diseases and majority of these were identified in alcoholics such as liver diseases (89.2%), heart diseases (88.0%), and other health problems (86.9%). CONCLUSIONS::  We identified that 65.4% of our study participants were alcoholics and 44% were moderate drinkers. Majority of alcoholics reported different health related problems. Individuals with high alcohol usage should be supported to gradually reduce the dose of alcohol intake. Further interventional studies are needed to educate alcoholics about the health risks associated with alcohol use.