The current study has examined ERO theta power underlying reward processing (i.e., during evaluation of loss/gain outcomes) as well as impulsivity features in HR offspring from high density alcoholism families of COGA and in LR individuals from community families. HR male subjects showed significantly lower ERO theta power and deficient CSD activity during reward processing compared to LR subjects. HR subjects also manifested increased impulsivity and higher rates of externalizing disorders than LR subjects. This lower ERO theta activity during reward processing in HR may reflect neurocognitive deficits that may underlie heightened impulsivity, and increased rates of externalizing disorders, that are inherently related to vulnerability for SUDs. It is suggested that ERO theta power during reward processing may be a useful endophenotype in predicting risk for developing alcoholism and related disorders, and studies are underway to measure the effects of genotypes and phenotypes as well as their interaction in causing specific clinical outcomes.