Although researchers recognize that social contexts shape parenting behaviors, the relationship between neighborhood environment and parenting remains poorly understood. To address this gap, we investigated the associations between compositional and contextual (structural, social, and safety) characteristics of neighborhoods and parental warmth. Data came from the Project on Human Development in Chicago Neighborhoods (PHDCN) Study and the 1990 Census. Results of multilevel linear regression analyses suggested that most of the unexplained variation in warmth resulted from compositional differences between caregivers within neighborhoods. We also found significant unexplained neighborhood variation in warmth after adjusting for numerous compositional variables, though our neighborhood variables did not explain this remaining variation. Other compositional or contextual variables may account for this neighborhood level variation. Findings suggest that although differences between caregivers explain most of the between-neighborhood variation in parental warmth, neighborhood environment is important. These findings highlight the importance of the neighborhood in studies of parenting. (Contains 4 tables.)