Few studies examine how neighborhood structural factors (e.g., socioeconomic status SES and diversity) and perceived disorder may influence the messages parents communicate to their youth about race/ethnicity. Guided by the integrative model and social disorganization theory, this study examines how parents' ethnic–racial socialization messages (ERS) are shaped by the broader environment. Data come from the MacArthur Studies of Diversity in Midlife. Latinx and African American parents N = 508 (Mage = 39) with a child between 6‐ and 17‐years old living in two urban US cities were included. Cultural perceptions were assessed at both the individual level (e.g., perceived discrimination and ethnic affirmation) and neighborhood level along with demographic and structural neighborhood characteristics at the individual and neighborhood level, respectively. Multilevel analyses revealed that at both the individual level and neighborhood levels, perceived neighborhood problems were associated with more frequent messages about ethnicity and race (e.g., cultural socialization and preparation for bias). In addition, neighborhood‐level affirmation promoted cultural messages; in contrast, neighborhood‐level discrimination experiences positively impacted preparation for unfair treatment. Results reveal how parents' ERS is informed by their own characteristics as well as neighborhood factors. Further, cross‐level interactions were found. Findings are discussed in terms of contextual and cultural‐developmental theorizing about parenting. Highlights Neighborhood problems were associated with more frequent messages about ethnicity and race. Neighborhood‐level racial–ethnic group affirmation promoted cultural messages. Neighborhood‐level discrimination experiences positively impacted preparation for unfair treatment. Cross‐level interactions showed that cultural socialization frequency varied.