This study investigated the relationship between parental psychological wellbeing, parenting, children's psychological difficulties, and prosocial behavior in Kahramanmaraş earthquake‐affected families living in Türkiye in 2023. To this end, a mediation model was proposed for parental psychological distress that was hypothesized to exert an indirect effect on a child's psychological difficulties and prosocial behavior through parenting. Participants were 358 preschoolers between 4 and 6 years old and their one parent (father or mother) who completed a set of validated self‐report surveys in a cross‐sectional design study. Results showed positive associations between parental psychological distress and child's psychological difficulties but negative association with child's prosocial behavior. Furthermore, quality of parenting mediated the association between parental psychological distress and child's psychological difficulties and prosocial behavior. Our findings suggest that positive parenting may serve as a protective mechanism that mediates the association between parental psychological distress and a child's psychological difficulties and prosocial behaviors among families displaced by a natural disaster like an earthquake. These findings point to the need for supporting positive parent–child relationships in addition to decreasing the psychological distress of parents when exposed to potentially traumatizing events like this.