Reflective function (RF) is the capacity to reflect on one's own mental experiences and those of others. This study examined the relationship between parental RF and adolescent adjustment. One hundred and five adolescents, aged 14-18, and their mothers and fathers were interviewed and completed questionnaires during home visits. We measured parental RF, aspects of parenting behavior, and adolescent outcomes. We found that parental RF correlated with adolescent RF and social competence. Unexpectedly, it also correlated with internalizing problems and less positive self-perception. In addition, parental RF, particularly paternal RF, interacted with aspects of parenting behavior. In the presence of higher levels of parental RF, these behavioral aspects were associated with more positive adolescent outcomes. We conclude that (a) parental RF is associated with both desirable outcomes and possible costs and (b) parental RF, particularly paternal RF, is a significant moderator of the associations between parenting behaviors and adolescent outcomes. (Contains 5 tables.)