This study examined associations among parenting style, home literacy practices, and children's language skills. A total of 181 ethnically diverse parents, primarily African American, and their preschool‐aged child participated. Results suggest that an authoritative parenting style was positively associated with informal home literacy (book reading) practices and formal literacy (parental teaching) practices whereas an authoritarian parenting style was negatively associated with informal home literacy practices. Informal home literacy experience was positively and parents' teaching literacy was negatively related to children's oral language scores. In a mediational model, parents who were more likely to have authoritative parenting style provided their children with informal (reading) home literacy experiences, which in turn, was associated with children's oral language skill. Parent education was positively related to home literacy experiences and directly related to children's oral language skill. Findings suggest that researchers should acknowledge multiple aspects of parenting when considering relations among home literacy practices and children's language and literacy development. Highlights Parenting style is associated with parents' engagement in home literacy activities with children. The relation between parenting style and children's oral language skills is mediated by the home literacy environment. Parent education has a strong and direct impact on children's oral language skills.