PurposeIncarceration rates are highest in rural communities, disproportionately exposing rural children to parental incarceration (PI). Substance use is a pressing public health issue—and a key driver of incarceration—in rural areas, yet limited research has examined PI as a social determinant of health for adolescent alcohol and drug use. This study links exposure to PI with rural adolescent substance use and examines the role of coresidence with parents in these associations.MethodsData come from the 2019 Minnesota Student Survey, including 18,820 rural adolescents. Respondents self‐reported experiences of PI (current, former, never), whether they lived with the parent at the time of incarceration, and past‐year alcohol, marijuana, cocaine, heroin, and methamphetamine use.FindingsOver 22% of rural adolescents experienced PI. In adjusted logistic regression models, current PI was associated with greater past‐year alcohol (aOR = 2.20), marijuana (aOR = 4.08), cocaine (aOR = 3.61), heroin (aOR = 4.96), and methamphetamine (aOR = 5.43) use compared to peers who never experienced PI. Current PI was also associated with greater counts of use. Associations between coresidence and substance use were largely nonsignificant.ConclusionsThe elevated risk for substance use in the context of rural PI and its adverse sequelae call for expanded prevention and intervention strategies that support adolescent health alongside targeted decarceration efforts in rural communities that reduce the number of families put in the potentially compromising situation of PI.