Emotion regulation has been implicated in the etiology of depression. A first step in adaptive emotion regulation involves emotional clarity, the ability to recognize and differentiate one’s emotional experience. As family members are critical in facilitating emotional understanding and communication, we examined the impact of family functioning on adolescent emotional clarity and depressive symptoms. We followed 364 adolescents (ages 12–17; 52.5% female; 51.4 % Caucasian, 48.6% African American) and their mothers over 2 years (3 time points) and assessed emotional clarity, depressive symptoms, and adolescent-reported and mother-reported family functioning. Emotional clarity mediated the relationship between adolescent-reported family functioning and depressive symptoms at all time points cross-sectionally, and according to mother-reported family functioning at Time 1 only. There was no evidence of longitudinal mediation for adolescent- or mother-reported family functioning. Thus, family functioning, emotional clarity, and depressive symptoms are strongly related constructs during various time points in adolescence, which has important implications for intervention, especially within the family unit.