This study investigated whether the number of alcohol outlets per 10,000 population in a given area (density) influenced parental supply of alcohol to adolescents; differences in Australian born and acculturating parents were also examined. A state-representative student survey in Victoria identified that the majority of adolescents (55%) reported that they had used alcohol in the past 12months; 34 % of those who had consumed alcohol reported that it had been supplied by their parents. Multilevel modelling identified that there were no overall effects of density, however there were different effects based on parent country of birth and type of license. Specifically, each unit increase in the density of takeaway liquor stores increased the likelihood by 2.03 that children with both Australian-born parents would be supplied alcohol. Adolescents with both migrant parents on the other hand, had a 1.36 increased risk of being supplied alcohol as the density of outlets requiring at-venue consumption increased. The findings of this study suggest that in Australia, alcohol outlet density is associated with parental supply of alcohol to children, with this effect moderated by the cultural background of the parent and type of outlet density. Future research should investigate the association between the density of alcohol outlets and public approval of parents supplying alcohol to adolescents.