For children with emotional or behavioral problems, family can be an important source of support. However, the child’s symptomatology may interfere with healthy family functioning. Family dysfunction predicts anxiety and withdrawal in children as early as age two (St. Jonn-Seed & Weiss, 2002), as well as increased depressive and manic symptomatology at follow-up in youth with bipolar disorder (Kim & Miklowitz, 2004). There is also evidence that caregiver depression may affect reporting of child internalizing and externalizing problem behaviors (Gartstein, Bridgett, Dishion, & Kaufman, 2009). This study examines the extent to which caregiver- and adolescent-rated symptoms of bipolar disorder and caregiver depression predict family functioning in urban youth (N=345; mean age=13.44, SD=1.96). Fifty-two percent of youth were male. Participants were 64% African American, 28% Caucasian, 2% Hispanic, and 5% other. Linear regression showed that caregiver’s level of depression on the Beck Depression Inventory significantly predicted total scores on the Family Assessment Device (FAD) after controlling for the youth’s bipolar diagnosis and number of comorbid diagnoses (R²Δ=.08, p<.001). Caregiver-reported youth depression and mania symptoms on the General Behavior Inventory was no longer a significant predictor after the variance attributable to caregiver depression was removed. Adolescent self-report significantly predicted FAD total score (R²Δ=.02, p<.05); self-reported hypomanic symptoms predicted increases in family functioning (β=-.28, p=.01). It may be that certain aspects of hypomania (e.g., sociability, being in a good mood, being more productive) are protective and may contribute to good family functioning. Caregiver depression may contribute to reporting of impaired family functioning.