We examined the relative contribution of genetic, shared environmental and non‐shared environmental factors to the covariance between parental sensitivity and limit‐setting observed twice in a longitudinal study using a child‐based twin design. Parental sensitivity and parental limit‐setting were observed in 236 parents with each of their same‐sex toddler twin children (M
age = 3.8 years; 58% monozygotic). Bivariate behavioral genetic models indicated substantial effects of similar shared environmental factors on parental sensitivity and limit‐setting and on the overlap within sensitivity and limit‐setting across 1 year. Moderate child‐driven genetic effects were found for parental limit‐setting in year 1 and across 1 year. Genetic child factors contributing to explaining the variance in limit‐setting over time were the same, whereas shared environmental factors showed some overlap.