There is growing evidence that young people own alcohol-branded merchandise (ABM), and that ownership influences their drinking intentions and behaviours. However, there is a paucity of research on parents' knowledge or attitudes in relation to ownership of ABM. Study 1 (n = 210) identified high levels of ownership of ABM and associations between ABM and drinking attitudes and behaviours. In Study 2, focus groups with Australian parents found that they were aware of ABM - and many had items of ABM in their home - but they had generally not engaged in consideration of the potential impact on their children. They clearly perceived ABM as advertising and, on reflection, acknowledged that this form of marketing may influence children's decisions about drinking. There is a need to raise parental awareness of the effects of ABM and to endeavour to reduce children's exposure to this influential form of alcohol marketing.