Among the various social environmental factors, the family environment has the most direct, profound and lasting influence on people's psychological development. This is because, first of all, the family is the place where people are born, the first environment that people come into contact with and live in, and the first place where a person receives education. Family has an important influence on one's physical and mental growth, the development of moral character and the formation of individual character. Second, the family is the living environment in which people live continuously for the longest time. Children spend most of their lives at home, where their first moral values are formed. The formation of a person's psychological qualities, characteristics, personality, and habits is directly related to the family environment and child discipline. Thirdly, the views, ways and methods of family education, the style, habits and moral cultivation of family members, parents'psychological quality, psychological development level, personality and character traits all deeply influence children's mind. Family Environment has a great influence on the formation of personality, and at the same time plays a decisive role in the direction and level of psychological development.