This study examines the relationship between permissive parenting style and atypical behaviour in preschool children, focusing on the mediating role of generalized anxiety. A community sample of 293 children, aged 3-5 years, were tested with measures assessed by parents and teachers. Regression analyses were employed. The psychometric tests used were: Parenting Styles and Dimensions Questionnaire - Mother Form, Behavior Assessment System for Children, Second Edition, Teacher Rating Scale, and Preschool Anxiety Scale - Parent version. Children whose parents have a permissive parenting style exhibit a high level of atypical behaviour, and a very high level of generalized anxiety. Generalized anxiety adds significant explanatory variance for atypical behaviour in preschool children over and above permissive parenting style. Generalized anxiety has a partial mediating effect on the relationship between father's permissive parenting style and atypical behaviour and a total mediating effect on the relationship between mother's permissive parenting style and atypical behaviour.