Although drinking is often associated with men's sexual activity, basic questions about alcohol's effects on men's sexual arousal remain unanswered. Inconsistencies in findings from studies examining subjective and physiological effects on erectile functioning suggest that alcohol's effects are context specific, e.g., dependent on whether one wants to maximize or suppress his arousal. To address unresolved questions about alcohol and erectile functioning, two experiments evaluated the effects of high blood alcohol concentrations (BACs) and arousal instructional demands on indices of penile circumference change and self-reported sexual arousal. In Experiment 1, a target BAC of .10% (versus .00%) attenuated peak circumference change from a neutral baseline but had no effects on average change, latency to arousal onset (a 5% increase in circumference from baseline), latency to peak achieved arousal, or subjective arousal. Instructions to maximize arousal (versus no instruction) increased subjective arousal, which was moderately correlated with physiological indices. In Experiment 2, instructions to maximize (versus suppress) arousal increased peak and mean circumference change and interacted with a target BAC of .08% (versus .00%) to influence latency to arousal onset: sober men instructed to maximize showed a shorter latency to arousal onset than did sober men instructed to suppress; however, intoxicated men did not show a differential pattern. Moreover, compared to intoxicated counterparts, sober men instructed to maximize showed a marginally shorter latency to arousal onset. Overall, alcohol and arousal instructions had small but discernible effects with young moderate drinkers. Findings highlight the importance of contextual factors in alcohol's impact on erectile functioning.