Alcohol use among Muslims has received scant research attention, and little is known about the factors that underlie Arab Muslim adolescents’ use of alcohol. The data used in this study is based on a large and representative sample of 2,948 Arab Muslim students from Israel, aged 11–18. The results showed that almost 10% of the adolescents reported using alcohol. The findings indicated that greater exposure to community violence victimization increases the risk for adolescent affiliation with delinquent peers, which in turn increases the use of alcohol. Furthermore, it was found that positive parent–child communication serves as a protective factor that mitigates the negative impact of association with delinquent peers. Our study indicates that adolescent alcohol use might most effectively be addressed with a holistic approach. The study emphasizes the critical need to reduce violence in Arab neighborhoods and highlights the central role parenting plays in protecting children from involvement in alcohol use.