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Alcohol use among adolescents is a public health concern. Research of the predictors of adolescent alcohol initiation and use are necessary to better combat the negative impacts associated with alcohol use by youth. Due to social influences, adolescents develop a sense of self-efficacy and sensation seeking, which can guide them to get involved in early alcohol use. Both parents and peers have a great deal of authority to push one to have certain beliefs about drinking alcohol. The goal of this literature review is to better understand how the personality characteristics of self-efficacy and sensation seeking influence alcohol initiation and use by youths, and to identify how parents and peers influence one's self-efficacy and sensation seeking characteristics in relation to alcohol use.