Although positive parenting behavior is central to efficacious interventions for child conduct problems (CP), studies of youth CP have focused mostly on negative parenting behavior. That is, few studies have examined dimensions of positive parenting behavior (e.g., positive reinforcement, involvement) as independent predictors of CP and even fewer have investigated their potential moderation by callous-unemotional (CU) traits. A sample of 184 6-9 year-old children with and without attention-deficit/hyperactivity disorder (ADHD) was followed prospectively for two years. Controlling for baseline ADHD diagnostic status, initial CP, and negative parenting (i.e., corporal punishment), we examined CU traits, positive reinforcement and involvement, and their interactions as predictors of two-year change in CP. Positive reinforcement and CU traits independently predicted increased rule breaking behavior whereas parental involvement inversely predicted aggressive behavior. A significant positive reinforcement x CU traits interaction suggested that positive reinforcement predicted a decrease in aggressive behavior, but only in children with low CU traits; conversely, positively reinforcement marginally predicted increased aggressive behavior among children with high CU traits. No other significant parenting x CU traits interaction was observed. We consider these findings within a developmental psychopathology framework where interactive exchanges underlie the development of CP.