Alcohol-induced psychosis is a term used to describe any form of psychosis caused by alcohol use. It can occur during various stages of alcohol abuse, including acute intoxication, withdrawal, and chronic alcoholism. Alcohol-related psychosis is also known as alcohol hallucinosis. Symptoms of alcohol-induced psychosis present during or shortly after heavy alcohol intake and are similar to schizophrenia but have been found to be a unique and independent condition. The specific diagnosis of alcohol-related psychosis is characterized by hallucinations, paranoia, and fear. Alcohol is a neurotoxin that damages the brain in a complex manner through prolonged exposure and repeated withdrawal, resulting in significant morbidity and mortality. Some characteristics that may help differentiate alcohol-induced psychosis from schizophrenia are that alcohol-induced psychosis shows later onset of psychosis, higher levels of depressive and anxiety symptoms, fewer negative and disorganized symptoms, better insight and judgment towards psychotic symptoms, and less functional impairment. Alcohol-induced psychosis can be dangerous and requires medical treatment. The best way to avoid developing any of these conditions is to quit drinking.