Children who are under the age of five in underdeveloped and developing countries, including China, exhibit developmental delays due to their exposure to risks such as impoverishment, deprived health conditions, parental punishment, neglect, and poor psychosocial stimulation. Adverse experiences during the formative years of life, such as harsh parental discipline, may put them at risk for poor physical and mental well-being. The aim of this research is to explore the pervasiveness and developmental outcomes of different forms of discipline practices in the underdeveloped rural areas of China. To do this, we used cross-sectional data on child–caregiver dyads from a large survey held in 22 poor counties in the QinBa Mountain Region. The sample included 1622 children aged 12–36 months. Partakers were requested to respond to a general survey on parenting which included basic demographic questions, the Ages and Stages Questionnaire: Social-Emotional (ASQ-SE), the Bayley Scales of Infant and Toddler Development (BSID-III), and questions on exposure of children to different discipline practices. Our findings from OLS estimates reveal that aversive discipline methods adversely affect cognitive, language, and socio-emotional development, whereas, non-aversive discipline practices have constructive effects on cognitive, language, and motor development of children.