Here we provide evidence that ethanol intoxication is rewarding to flies, map this response to a discrete location in the fly brain, and describe a novel gene important for the formation of reward memory. Our model reveals that, like mammals, flies (1) show both conditioned aversion and preference to ethanol, (2) show long-lasting preference for a cue associated with ethanol intoxication, (3) will overcome an aversive stimulus to obtain a cue associated with ethanol, (4) use dopaminergic systems to express memories for a cue associated with ethanol intoxication, and (5) rely on sequential use of distinct brain circuits to acquire, consolidate, and express memories of reward. These similarities suggest that the neural and molecular pathways mediating ethanol’s rewarding properties are evolutionarily conserved.