Inclusion Criteria:

• Meets criteria for alcohol dependence.
• Currently abstinent from alcohol and other drugs for at least 3 months.
• Meets criteria for history of major depression independent of alcohol use.
• Smoked an average of 10 or more cigarettes per day during the past month.
• Able to fully participate in all aspects of the study.
• Willing to participate in eight 2-hour treatment sessions and 12 months of followup.
• Willing to stop smoking and wear a nicotine patch for six consecutive weeks and refrain from participating in additional smoking interventions for the duration of treatment.

Exclusion Criteria:

• Current episode of major depression (within the last 3 months) or current or lifetime history of bipolar disorder, schizophrenia or other major psychiatric disorders.
• Current use of antidepressant, other psychotropic medications, smokeless tobacco, nicotine replacement or other smoking cessation therapy.
• Any medical condition that would preclude use of the nicotine patch including current unstable angina, recent history (within 1 month) of myocardial infarction or stroke, history of severe skin allergies or evidence of severe chronic dermatoses.
• Currently pregnant, breast feeding or likely to become pregnant during the nicotine patch phase of the study.