The majority of research on children with incarcerated parents has focused on documenting main effects and adjustment problems among children and families. Although the focus on problems has been crucial in mobilizing support for this population, the field is now at a critical turning point where researchers are calling for more attention to resilience. We argue here that a family resilience perspective is useful in considering child and family level processes that may mitigate the harmful impact of parental incarceration. In contributing to a family resilience agenda, we first review evidence that points to parental incarceration as a risk to children. We then examine research that highlights children's competence in the face of adversity as well as adaptive family processes, such as parenting and contact with the incarcerated parent, that contribute to children's well-being. We offer recommendations for methodological innovation aimed at assessing competence, evaluating interventions, and incorporating multimethod approaches that capture dynamic processes and developmental change. We conclude with practice and policy implications and emphasize how a family resilience agenda suggests the need to contextualize developmental and family strengths within broader systems of discrimination and oppression. (PsycInfo Database Record (c) 2022 APA, all rights reserved).