It is crucial to identify parenting techniques that are suitable for the present-day environment to promote the optimal mental well-being of children. Following a PRISMA method, this study conducted a systematic review of the relationships between parenting style and children’s self-efficacy. A total of 32 journal articles published on Scopus and Web of Science in the last five years were included in the review. The synthesis indicated that while an authoritative parenting style often generates good results, parents’ permissiveness nowadays can be beneficial to offspring’s growth of self-efficacy. Combined with the analysis of different dimensions of parenting style, this study concluded that a warm-based parenting style is favorable parenting for developing children’s self-efficacy, no matter the children’s age, cultural contexts, and types of self-efficacy. This study not only highlights the gaps in existing research and offers guidance for future study in the field, but also provides practical implications for contemporary family education. Parents and educators can gain valuable insights to implement effective parenting strategies and create a supportive atmosphere that is consistent between home and school.