Structural equation modeling was used (a) to determine the extent to which parent-related and non-parent-related adversity were associated with increases in conduct problems between childhood and adolescence and (b) to evaluate the possible preventive, compensatory, and moderating effects of parenting quality in this regard. Subjects were 180 boys and girls from the Project Competence longitudinal study of adversity, competence, and resilience (Garmezy & Tellegen, 1984). Conduct problems, parenting quality, and socioeconomic status were assessed when subjects were in the third through sixth grades, and adversity and conduct problems were assessed again 7 years later. Results were consistent with the view that parentrelated adversity experienced between the two assessment times was associated with a small increase in conduct problems. Adversity involving siblings, extended family, and friends was not associated with changes in conduct. Effective parenting was associated with less parent-related adversity during adolescence. Effective parenting, however, did not directly compensate for the negative effects of adversity; nor did it moderate the effects of adversity. Structural equation modeling was helpful in testing for several of these effects simultaneously. Short-term longitudinal studies with baseline measures, more frequent assessments, and adequate sample size are necessary to clarify the processes suggested by these results.