This review discusses: (a) classification and diagnosis of addictions; (b) studies demonstrating the role of heritable variation in addiction and the overlap of heritable influences across drug classes; (c) putative candidate genes and emerging results from genomewide association studies; and (d) novel research methods to advance phenotyping of addictions, including the use of endophenotypes, biomarkers and imaging technology; (e) the role of alternative sources of genetic variants and bioinformatics; (f) gene–environment interplay; and (g) the emergence of pharmacogenomics. Finally, we discuss how the application of these various methods has begun to elucidate processes underlying nicotine addiction and the strategies this enables for new treatments.