The intergenerational transmission of disadvantage through parental mental health remains an understudied dimension of poverty research. This study examines the relationship between childhood exposure to parental mental health problems and multidimensional poverty risks in later adulthood using nationally representative Chinese data. Building upon life course theory, we expect that childhood exposure to parental mental health problems is positively associated with poverty risks in later life and that the longer exposure and greater severity correspond to higher poverty risks. We also posit a same-sex transmission, where maternal mental health exhibits a stronger association for daughters, while paternal mental health shows a stronger association for sons. Multivariate logistic regressions results show strong support for these expectations. Mediation analyses using the Karlson–Holm–Breen method further reveal that adult children’s depressive symptoms and educational attainment as potential pathways underlying this intergenerational association. Our study highlights the importance of early-life interventions targeting parental mental health to disrupt cycles of intergenerational disadvantage.