We have investigated the consequences of the addition of ethanol to aqueous solutions containing 100 nm diameter phosphocholine unilamellar vesicles. We have studied the effect of ethanol addition on both gel phase and fluid phase phospholipid bilayers of 1,2-dimyristoyl-sn-phosphatidylcholine (DMPC), using time-resolved fluorescence measurements of perylene incorporated into the vesicles. We observe an increase in the perylene rotational diffusion time constants for ethanol concentrations of ca. 0.6 M in both the gel phase (289 K) and the fluid phase (303 K), indicating a change in the bilayer interacyl chain spacing and/or organization. While the change in rotational diffusion behavior of perylene is seen for both phospholipid phases, the details of the change in chromophore dynamics are not the same for the two phases, likely due to the differing extents of disorder in the phospholipid acyl chain region at the two temperatures. These data provide insight into the effects of ethanol on the local environment of the probe in both gel phase and fluid phase lipid bilayers.