Adolescents' perceptions of parenting style and parental involvement in their education were examined longitudinally and related to school dropout among Icelandic youth (N = 427). Results indicated that adolescents who, at age 14, characterized their parents as authoritative (showing acceptance and supervision) were more likely to have completed upper secondary school by age 22 than adolescents from non-authoritative families, controlling for adolescents' gender, socioeconomic status (SES), temperament, and parental involvement. Parenting style seems to more strongly predict school dropout than parental involvement. Further, parenting style may moderate the relationship between parental involvement and dropout, but not in all groups; only in authoritative families does parental involvement decrease the likelihood of school dropout. Furthermore, even after controlling for previous academic achievement, adolescents from authoritative families were less likely to drop out than adolescents from authoritarian and neglectful families. These findings emphasize the importance of encouraging quality parent-child relationships in order to reduce the likelihood of school dropout.