Using a high-risk community sample (N = 567), the current study examined risk for externalizing and internalizing problems in the children of parents with recovered and current substance use disorders (SUDs). This study also tested whether parenting mediated the relations between these variables. Results suggest that children of parents with current diagnoses were at elevated risk for externalizing and internalizing problems, but children of parents with recovered diagnoses were only at risk for externalizing problems. Perceived parental consistency of support mediated the relations between parent current SUD and child externalizing and internalizing problems. Disruption of the home environment may in part explain why children of parents with SUDs are at risk for externalizing and internalizing problems. However, even after parent SUD has remitted, children remain at risk for externalizing problems, suggesting multiple mechanisms by which parents confer risk for psychopathology.