Parental incarceration has been increasingly recognized as a significant threat to the development and well-being of millions of American children and youth. After decades of documenting problems among youth with incarcerated parents, researchers have now started to emphasize the critical need for research on heterogeneity and competence in this population. Towards this end, we used a mixed-methods approach to identify different subgroups of youth with incarcerated and non-resident parents (n = 26) and to explore potential patterns of individual and family factors across groups. Cluster analysis suggested four different subgroups of youth that varied in the extent to which they exhibited behavior problems and competence. The majority of youth were classified as “adjusted” or “striving”, with comparatively few categorized as either “thriving” or “vulnerable”. Thematic analysis of qualitative data suggested that groups varied in terms of the extent to which they experienced economic and residential instability and challenges related to their social location, as well as caregiver positive expressiveness, agency, and social support. Results further indicated that although parental incarceration may be a part of an overall profile of risk, it does not appear to consistently distinguish youth separated from parents for different reasons in terms of patterns of adjustment and competence.