Stress and social networks have been proposed as important determinants of parenting. In addition, parental social networks have been thought to influence child outcomes directly. Few studies, however, have examined all three areas concurrently. In the present study, which focused on the associations between parenting and children's competence in preschool, mothers and fathers in 30 families reported on stressful life events and social networks. Family interactions were assessed by home observations, observer ratings, and parent self-reports. Children's competence in preschool was assessed by teacher ratings. Findings indicated that losses (by death) were associated across methods with decreased warmth and increased control among parents. Correlations suggested that the developing social abilities of children 3 to 5.8 years of age may influence the composition of their mothers' social networks. Only a few aspects of parenting were consistently related to social network variables. Kin social support appeared to buffer the effects of stress; however, contrary findings emerged for support from friends, especially fathers' friends. Partial correlational analyses were consistent with the view that the effects of parental stress on child behavior are mediated by parent-child interactions, while social networks influence children directly, and strongly. References and data tables are appended. (Author/RH)