Data from the Early Childhood Longitudinal Study (ECLS-K; N = 6,420; 67.9% White/non-Hispanic, 15% Hispanic, 13% Black/non-Hispanic, 2% Asian, 3% Native American/Alaska Native; 25% of parents' income <$25,000, 25% = $25,001 to $45,000, 29% = $45,001 to $75,000, 20% = $75,001 or greater) were used to test structural equation models in which child externalizing or internalizing problems mediate the relation between parental physical discipline and child literacy development over time. Results show that parents' physical discipline in Kindergarten was associated with lower literacy levels in 8th grade and slower growth in literacy development from K-8. Additionally, parents' physical discipline during Kindergarten predicted more externalizing symptoms 1 year later, which in turn predicted lower literacy skills in eighth grade (partial mediation detected) and lower growth rates in literacy skills over time (complete mediation detected). Overall, parents' physical discipline administered during their child's kindergarten year may have cascading detrimental impacts on child literacy development through externalizing problem behaviors.