Approximately 63% of all incarcerated individuals in the U.S. identify as a parent (Glaze and Maruschak, 2010), with as many as 7% of children experiencing parental incarceration at some point in their lives (Murphey and Cooper, 2015). Historically, much of the parental incarceration literature has relied on between-groups comparison research, highlighting risks and determinants of pathology for youth with an incarcerated parent. However, significantly less research has attempted to understand resilience processes in the context of parental incarceration from a within-group resilience perspective. The overall goal of this dissertation research was to empirically test the theoretical Family Inequality Framework (Arditti, 2018) and better understand how family resilience processes influence the relationship between material hardship and child outcomes within the context of parental incarceration. Structural equation modeling was used to perform a mediational cross-sectional analysis. Results of these analyses suggest that parental mental health processes play an important role in mitigating adverse outcomes for families by mediating the effects of material hardship on youth academic adjustment in the context of parental incarceration. Theoretical, clinical, and policy implications, as well as future research directions are discussed. / Doctor of Philosophy / Approximately 63% of all incarcerated individuals in the U.S. identify as a parent (Glaze and Maruschak, 2010), with as many as 7% of children experiencing parental incarceration at some point in their lives (Murphey and Cooper, 2015). Historically, much of the existing research on parental incarceration is problem focused, painting these families in a negative light. In contrast, there is very little research highlighting the unique strengths and resiliences of families impacted by parental incarceration. The goal of this dissertation research was to better understand how family resilience processes, such as social support, parenting practices, and parental mental health, might reduce the negative impact of parental incarceration. Results suggest that parental mental health processes play an important role for overall family wellness during parental incarceration. In particular, the more a parent says they are doing well from a mental health perspective the better their kids appear to be doing in school. In this way, parental mental health wellness appears to provide a buffering effect against the common risks parental incarceration can introduce into a family. Theoretical, clinical, and policy implications, as well as future research directions are discussed.