What's new?• Although diabetes like other serious medical conditions impacts family members, with young offspring being particularly vulnerable, this review identified only 10 studies which met inclusion criteria that examined the adjustment of youth to parental type 1 and type 2 diabetes.• This is the first systematic review of research on the psychosocial outcomes in youth of parents with type 1 and type 2 diabetes. It identified research gaps and methodological issues to be addressed by future studies in this field.• In view of the dearth of research in this area, it is not possible to draw robust evidenced-based conclusions about young offspring psychosocial adjustment to parental diabetes. However, there was weak evidence suggesting some youth are at risk of adjustment difficulties in the context of parental diabetes, which warrants the attention of future research.