Substance use research in the United States has focused on ethnicity/race to the detriment of studying the role of nonethnic sociocultural factors. Reliance on politically defined ethnic categories has not added to knowledge on the etiology, prevalence, prevention, or treatment of substance use and misuse. Rather it has reflected the preoccupation with race/ethnicity in the larger United States society and has contributed to further stereotyping of non-European ethnic groups. Ethnicity serves as a proxy for a number of sociocultural factors (e.g., socioeconomic status) that are linked to substance use. To make progress in understanding substance use and misuse, researchers must move away from the simplistic reliance on ethnic labels to a more complex understanding of the impact of the sociocultural variables that such labels represent.