Background: Subjective response to alcohol is a robust predictor of alcohol outcomes. It is possible that the perceived subjective response of others may influence concurrent experiences of one's own subjective response. However, no studies have examined how the perceived subjective response of others might interact with personal subjective response and how such interactions may influence levels of craving and subsequent drinking. Method: Emerging adults (ages 18-25, N = 131, 53.4 % female) completed 21 days of ecological momentary assessments. During drinking events (N = 1335) both personal and perceived peer subjective response (four domains encompassing high- and low-arousal positive & negative effects) were assessed at drink initiation and two subsequent surveys 60 and 120 min later. Current craving and drinking quantity since last report were also collected. Three-level multilevel structural equation models with Bayesian estimation tested indirect relations between subjective response and drinking continuation via craving and whether perceived subjective response moderated such relations. Results: Levels of both personal (b=0.029,95 %BCI:[0.012,0.053]) and perceived (b=0.027,95 %BCI: [0.012,0.051]) experiences of alcohol's rewarding, stimulating effects indirectly predicted drinking continuation via increased craving, and relations were potentiated when perceptions of peer reward were highest (b=0.015,95 %BCI:[0.008,0.020]). Personal experiences of alcohol's relaxing, calming effects indirectly predicted a lower likelihood of drinking continuation via decreased craving (b=-0.017,95 %BCI:[-0.036,-0.003]) whereas perceived effects directly predicted lower likelihoods of drinking (b=-0.133,95 %CI:[-0.239,-0.031]). Conclusion: Results suggest both personal and perceived peer subjective response independently influence drinking behavior even when controlling for one another. Targeted interventions focused on altering interpretations of peer subjective effects may be effective at reducing momentary risk.