Although moral development of children has long been ascribed predominantly to the effects of parenting, there has been little systematic examination of the specific nature of this relation. In this paper, we identify four foundational components of children's moral development (social orientation, self-control, compliance, self-esteem) and four central aspects of moral functioning (empathy, conscience, moral reasoning, altruism). The parenting roots of each of these eight psychological characteristics are examined, and five core parenting processes (induction, nurturance, demandingness, modelling, democratic family process) that are related empirically to the development of these eight child characteristics are identified and discussed. Finally, we consider the implications of our analysis for teaching parents to influence positively their children's moral development.