To address the combined importance of fathers and neighborhoods for adolescent adjustment, we examined whether associations between fathers' parenting and adolescents' problem behaviors were qualified by neighborhood adversity. We captured both mainstream (e.g., authoritative) and alternative (e.g., no‐nonsense, reduced involvement) parenting styles and examined parenting and neighborhood effects on changes over time in problem behaviors among a sample of Mexican‐origin father–adolescent dyads (N = 462). Compared to their counterparts in low‐adversity neighborhoods, adolescents in high‐adversity neighborhoods experienced greater initial benefits from authoritative fathering, greater long‐term benefits from no‐nonsense fathering, and fewer costs associated with reduced involvement fathering. The combined influences of alternative paternal parenting styles and neighborhood adversity may set ethnic and racial minority adolescents on different developmental pathways to competence.