Do unhappy people drink alcohol or does alcohol make people unhappy? This research utilized cross-national data (Study 1) and a daily diary survey (Study 2) to investigate the link between alcohol consumption and happiness. In Study 1, at the national level, we examined the relation between alcohol consumption and happiness in 113 nations. The results revealed that there was an overall negative correlation between alcohol consumption and subjective well-being (SWB), positive affect, and generosity. In Study 2, at the individual level, we validated the findings of Study 1 by using the multilevel modeling method via the daily diary reports of Korean participants (N = 480). This method allowed us to investigate further whether alcohol consumption affected the level of happiness or whether happiness affected the level of alcohol consumption. The results showed that SWB increased the likelihood of alcohol consumption on that day, however, drinking alcohol decreases the level of SWB on the next day.