The primary purpose of this study was to examine the potential mediating effect of TEI on the relationship between parenting style/dimension and first year students’ university adjustment in higher education institutions of Ethiopia. The study sought to test a model where parental responsiveness, parental demandingness and the TEI interactively and individually, relate to adjustment. A total of 464 first year university students from three public universities participated in this study. The results of preliminary analyses pertaining to the predominantly practiced parenting style in the families of Ethiopia revealed that if gender is ignored, the most common parenting style is the neglectful style followed very closely by the authoritative style. However, parenting styles varied as a function of students’ gender. A statistically significant TEI score difference was found among the four parenting style categories. Results also revealed that a statistically significant difference on adjustment mean score was found among the four parenting style categories. The t-test result revealed that there was a statistically significant difference between male and female first year university students with regard to TEI score but there was no a statistically significant difference between male and female first year university students with respect to the adjustment score. The path analysis result also revealed that parental dimensions (responsiveness and demandingness) and TEI had a statistically significant and positive direct effect on adjustment. The multiple regression result showed that TEI, parental responsiveness and parental demandingness interactively explained 31.9 percent of the variance on adjustment. Finally, the mediation analysis results revealed that TEI plays a meditation role, but only partially, in the parental demandingness and adjustment relationship, and in the parental responsiveness and adjustment relationship, which potentially confirms that the adjustment scale can explain the relationship between the demandingness and responsiveness dimension-variables of parenting style and TEI. Based on the results of the present study, some practical, theoretical and methodological implications of the study for designing interventions to maximize students’ adjustment in higher education institutions are addressed. Moreover, recommendations, limitations and future directions are addressed for researchers to take lesson in undertaking this or similar types of research in the future. / Psychology / D. Phil. (Psychology)