The outbreak of the 2019 coronavirus disease (COVID-19) was an unprecedented global public health emergency with a significant psychological toll. This study aimed to understand how specific COVID-19 related stressors contributed to Chinese parents' fear induction practices, and how these practices, in turn, contributed to their children's disease prevention practices during the outbreak and depressive symptoms after the outbreak. Parents (N = 240, M[subscript age] = 38.50 years, 75% mothers) with elementary-school-age children (M[subscript age] = 9.48 years, 46% girls) in Wenzhou, 1 of the most impacted cities in China, reported on the presence of confirmed or suspected cases in their communities, their frequencies of consuming COVID-19-related information, fear induction practices, and their children's trait anxiety and disease prevention practices during the outbreak (January 28-30, 2020). Child-reported depressive symptoms were collected between March 7-11, 2020; during which there were very few remaining cases and no new confirmed cases or deaths. Parents' higher frequency of virus-related information consumption but not the presence of community infection was associated with their engagement in more fear induction practices, which was in turn associated with children's greater engagement in prevention practices during the outbreak, but more post-quarantine depressive symptoms. Child trait anxiety exacerbated the association between parent fear induction and child depressive symptoms. Using fear induction parenting may promote children's willingness to cooperate and participate in disease prevention practices during the crisis but at the cost of children's long-term mental health.