We compared the metabolism of azoxymethane (AOM) and of N-nitrosodimethylamine (NDMA) by liver microsomes obtained from male F344 rats pair-fed for 3 weeks either a control liquid diet or an isocaloric liquid diet containing ethanol at a concentration of 6.6% by volume. High-performance liquid chromatographic analysis of the products of the microsomal metabolism of AOM showed that methylazoxymethanol was the only primary metabolite. While the formation of small (less than 4% of methylazoxymethanol) quantities of methanol and formaldehyde could also be detected in this reaction, these products could be accounted for almost entirely by the spontaneous decomposition of methylazoxymethanol. With NDMA as the substrate in the incubation system, the formation of methylamine, formaldehyde, methanol, and an additional, as yet unidentified metabolite was detected. Liver microsomes obtained from rats fed the ethanol-containing diet up to the time of sacrifice were 12-18 times more active in the metabolism of both AOM and NDMA than liver microsomes obtained from rats fed the control, ethanol-free diet for the same period. When rats fed the ethanol diet for 20.5 days were fed the control diet for 0.5 days and then sacrificed, only a 2- to 3-fold increase in the metabolism of both AOM and NDMA by liver microsomes was observed, indicating that cessation of ethanol intake results in a rapid decrease of the ethanol-induced metabolic enzymes. Hepatocytes isolated from ethanol-fed rats showed a significantly enhanced sensitivity to AOM- as well as to NDMA-induced unscheduled DNA synthesis, indicating that the increased rate of microsomal metabolism induced by ethanol is associated with enhanced carcinogen activation in vitro. The metabolism of AOM and NDMA by liver microsomes was inhibited to similar extents by carbon monoxide, pyrazole, sodium azide, aminoacetonitrile, imidazole, and ethanol. In addition, both ethanol and NDMA were found to inhibit competitively the microsomal metabolism of AOM. These results suggest that AOM and NDMA are metabolized by very similar, indeed perhaps the same rat liver microsomal enzyme(s).