This study examined longitudinal effects of adolescent and parent cultural stress on adolescent and parent emotional well‐being and health behaviors via trajectories of adolescent and parent family functioning. Recent immigrant Latino adolescents (Mage = 14.51) and parents (Mage = 41.09; N = 302) completed measures of these constructs. Latent growth modeling indicated that adolescent and parent family functioning remained stable over time. Early levels of family functioning predicted adolescent and parent outcomes. Baseline adolescent cultural stress predicted lower positive adolescent and parent family functioning. Latent class growth analyses produced a two‐class solution for family functioning. Adolescents and parents in the low family functioning class reported low family functioning over time. Adolescents and parents in the high family functioning class experienced increases in family functioning.