Peripheral neuropathy includes more than 100 types with its own effects and prognosis. Generally classified based upon the type of destruction to the nerves. Peripheral neuropathy is caused due to damage to axons or damage to myelin sheath. Certain peripheral neuropathy involves both damage to axons and demyelination. Ethanol metabolite acetaldehyde has a direct neurotoxic consequence. Impairment in axonal transport and disturbance in cytoskeletal properties is due to the direct toxicity. Nutritional deficiency due to thiamine associated with alcohol usage is a confounding factor for neuropathy. Molecular level theory suggests that Protein kinases A and C are involved in the development of neuropathy. Electrodiagnostic studies helps in determining the type of peripheral neuropathy. Based on studies including the clinical and electro-diagnostics criteria and criteria for alcoholism listed in the Diagnostic and Statistical Manual of Mental Disorders the prevalence of neuropathy was found to be 25–66%. The factors responsible for development of alcohol neuropathy are the duration of alcohol consumption and quantity of total lifetime alcohol consumption.