Here, we present results focusing on the NMDA receptor to explore the potential use of human iPS-derived neural cells to examine the biological and molecular effects of alcohol. Electrophysiological recordings revealed that iPS-derived neurons in our cultures were able to generate action potentials, exhibited spontaneous synaptic activity, and expressed functional GABAA, AMPA, and NMDA receptors. Chronic effects of alcohol exposure were also detectable using electrophysiological and gene expression analysis.