The inclusive education largely focuses on structural access as opposed to the developmental processes that sustain psychological inclusion. This is a systematic literature review (SLR) that takes into account ten journal articles to determine the role of parenting dynamics that enable the regulatory capacity of students with special educational needs (SEN). The study that was carried out on the premises of the psychosocial theory as proposed by Erikson demonstrates that the home environment plays a very important mediator role in academic support provided in the inclusive classroom setting. Findings indicate that, as well as adaptive emotion regulation is an individual skill, parental modelling and autonomy support co-construct adaptive emotion regulation. Specifically, authoritative parenting has assisted in defeating such crises as Autonomy vs. Shame and Industry vs. Inferiority and assists a child in gaining essential ego strengths such as will and competence. Conversely, overprotective and stressful parents hinder the possibility of learning to do things on their own, and could lead to developmental retardation or internalized inferiority. The conclusion of the review is that inclusive education needs to be redefined to be a relational-developmental ecosystem. By improving emotional coaching in the parents, and aligning the expectations between school and home, the practitioners will be better placed to help the parents shift the responsibility gradually to the early childhood regulation.