Abstract: This study investigated how adolescent and parent acculturation (culture‐of‐origin and U.S. cultural involvement, biculturalism, acculturation conflicts, and parent‐adolescent acculturation gaps) influenced family dynamics (family cohesion, adaptability, familism, and parent‐adolescent conflict) in a sample of 402 Latino families from North Carolina and Arizona. Multiple regression and hierarchical linear models suggested that culture‐of‐origin involvement and biculturalism were cultural assets related to positive outcomes, whereas acculturation conflict was inversely related to positive family dynamics and positively related to parent‐adolescent conflict. Parent‐adolescent acculturation gaps were inversely associated with family cohesion, adaptability, and familism but were unrelated to parent‐adolescent conflict. Limitations and implications for practice are discussed.