Parents are one of the most important factors promoting children's educational success. Using parent survey data from rural primary and middle schools in one county, this study examines the implementation of the parent councils (PCs) policy in rural China, specifically, the relationships among PCs, school-based parent involvement (PI), and parent satisfaction. Our analysis shows that not all schools have established PCs and only a small proportion of parents were aware of the existence of PCs. Multi-level mixed effects logistic regression results indicate that having a PC and perceiving a PC in school were both associated with improved parent-teacher communication and parent participation in various school activities. However, the magnitudes of the relationships were substantially higher in the models using perceived existence of PCs. Because of more frequent parent-teacher communication and parent participation in school activities, parent satisfaction levels were higher in schools with PCs, and the satisfaction levels were even higher in schools where parents were aware of the PC's existence. The findings contribute to our understanding of the importance of PI and have implications for policymakers and school leaders to promote parent satisfaction by establishing PCs, raising the awareness of PCs among parents, and increasing meaningful school-based PI.