The purpose of this study was to examine the relationship between family leisure that includes physical activity and family functioning among families that have at least one child (17 years old or younger) at home. The sample consisted of 519 families. Data were analyzed from a parental perspective. Family leisure that includes physical activity was determined by using an adapted version of the Family Leisure Activity Profile (FLAP). Family functioning was determined using FACES II. Univariate analyses indicated significant positive correlations between the amount of the intensity present during physical activity participation and family functioning, cohesion, and adaptability. Multivariable analyses indicated a significant positive relationship between family leisure involvement and family functioning. Both core and balance family leisure patterns were predictors of family functioning; however, core family leisure patterns were the strongest family leisure predictor of family functioning. Intensity of physical activity during family leisure, as indicated by the results of the multivariable analyses, was not significant in explaining the variance of the dependent variable: family functioning. For the sample of this study, home-based recreational activities were preferred over all other types of family recreation even if families were living by public parks or recreational centers. Implications for recreational practitioners, other interesting findings, and recommendations for further research are discussed.