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Chronic ethanol consumption leads to memory impairment and also induces brain damage. The hippocampus has been particularly regarded as a possible target organ of alcoholic intoxication, since this structure plays a prominent function in memory processes. Cordyceps has been used as a traditional medicine in Asian countries for a long time. Different types of Cordyceps extract were reported to have various pharmacological activities including anti-tumor, anti-inflammatory, anti-viral, and immune modulatory effects. Guem Chung Cho is an artificial cultivated Cordyceps, and was supplied from GCordy (Seoul, Korea). Ethanol extract of Cordycep (50 g) was made by rotary evaporate, and resulting powder 8.29 g was obtained (yield 17%). In the present study, we investigated the effects of ethanol extract of Geum Chung Cho on short-term memory, cell proliferation and apoptosis in the hippocampus of ethanol-treated gerbils. The gerbils were divided into 5 groups (n = 10 in each group): Control group, alcohol-treated group, alcohol-treated and 0.001 mg/kg Geum Chung Cho-applied group, alcohol-treated and 0.01 mg/kg Geum Chung Cho-applied group, and alcohol-treated and 0.1 mg/kg Geum Chung Cho-applied group. Gerbils in the alcohol-treated groups were orally administered ethanol (1 g/kg) once a day for 2 weeks. Gerbils in the Guem Chung Cho-applied groups were orally administered Guem Chung Cho extract at each dosage 1 hour before ethanol consumption. Our results revealed that consumption of alcohol for 2 weeks deteriorated short-term memory, induced apoptosis, and inhibited cell proliferation, and reduced expressions of brain-derived neurotrophic (BDNF) and tyrosine kinase B (TrkB). However, Guem Chung Cho treatment alleviated alcohol-induced short-term memory impairment through enhancing cell proliferation and BDNF expression with inhibiting apoptosis in the hippocampus. Guem Chung Cho showed maximum effects at 0.1 mg/kg. Based on these results, alcohol extract of Guem Chung Cho may provide therapeutic value for the treatment of chronic alcohol-inducted brain injury. This study was supported by GCordy company.