Introduction and Background: Parenting, a dynamic interplay of attitudes and behaviors, is pivotal in shaping development and fostering emotional bonds among the millennials and Generation Z (Gen Z). Parents mold and shape their children through their world of influence. Various attitudes and behaviors that are distinct in nature characterize this detailed activity. During the development of the mentioned generations, a period of rapid emotional, mental, and physical growth, parenting practices significantly influence their mental health. Millennials and Gen Z are often distinguished by their preceding and succeeding generations by a series of complex emotional upheavals, conflicts with parents, and irrational behavior. During their developmental stages, the type of parenting style adopted by their parents serves a very contributive role in their development. This paper aims to investigate the correlation between various parenting styles and mental well-being among millennials and Gen Z. Methods: A comprehensive review of the literature on various parenting styles was conducted, focusing on studies published in the past 10 years. The key characteristics, strengths, and limitations of each parenting style were identified. In addition to this, their potential impacts on millennials' and Gen Z's social, affective, and cognitive development were studied. Results: Millennials' and Gen Z's mental health is significantly impacted by the parenting style their parents choose to adopt and implement. Better mental health outcomes have been associated with authoritative parenting. Whereas authoritarian, permissive, neglectful, and helicopter parenting styles are associated with poorer mental health outcomes. Conclusion: Existing research indicates that parenting style plays a crucial role in the psychosocial development of millennials and Gen Z. The parenting approaches employed by parents significantly impact various aspects of a child's life.