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Growing public awareness of the use of donor insemination (DI) to enable infertile couples to become parents has been accompanied by increasing concern regarding the potentially negative consequences for family relationships and child development. Findings are presented from a prospective study of the quality of parenting and psychological adjustment of DI children at age 12. Thirty-seven DI families, 49 adoptive families, and 91 families with a naturally conceived child were compared on standardized interview and questionnaire measures administered to mothers, fathers, children, and teachers. The differences between DI families and the other family types reflected greater expressive warmth of DI mothers toward their children and less involvement in the discipline of their children by DI fathers. The DI children were well adjusted in terms of their social and emotional development. The findings are discussed with respect to the secrecy surrounding DI and the imbalance in genetic relatedness between the parents and the child.