This study focuses on the intricate connections among youth sports, personal development, and skill acquisition in contemporary China. Building upon established theoretical frameworks, the study aims to unravel the intricate interplay among various variables. Employing a robust methodology that accounts for mediation and moderation effects and with a sample of 808 individuals representing diverse demographics, the findings shed light on the significant influence of family structure, particularly the prevalence of extended family arrangements, on an individual's character development. Furthermore, the study underscores the pivotal role of personal characteristics, particularly self-esteem, in shaping admirable traits. The research identifies several contributing factors to positive character development, including active participation in sports, parental support, accessibility to sports facilities, positive peer influence, and high self-esteem. Parents play a crucial role in mitigating the adverse effects of peer pressure by offering positive reinforcement and serving as role models. These findings hold important implications for youth development programs, emphasizing the vital role of parents in guiding character development, particularly in the context of peer pressure.