A good number of children grow up in households where a parent has been diagnosed with medical chronic illness. Parental chronic illness is stressful for children and adolescents and may have some potential impact on children's adjustment and functioning. Some emerging research conducted in the fields of medicine, nursing, and family studies has suggested that children of chronically ill parents are at an increased risk for adjustment difficulties and emotional and behavioral problems. However, this topic has been neglected in school psychology literature. This review aims to provide an overview on research with respect to the effects of parental chronic illness on children's psychosocial and educational functioning and help school psychology researchers and practitioners understand the impact of parents' illness on children's outcomes and factors (e.g., typology of illness, family functioning, parenting, child cognitive appraisal and coping strategies, etc.) that may moderate and mediate the relationship. Mixed findings in the literature reflect the complex and dynamic nature of this issue. Implications and recommendations for interventions will be discussed.