Background: Atopic Dermatitis (AD) affects up to 20% of children and significantly negatively impacts their and their caregiver’s quality of life (QoL). Research shows that caregivers with lower QoL may struggle to manage their child’s AD effectively, and modifiable factors that affect their ability include illness perceptions and self-efficacy (SE). The study aimed to investigate the relationship between AD severity, caregiver illness perceptions, QoL and SE in the management of a child’s AD. Methods: 103 caregivers of children with atopic dermatitis completed an online survey consisting of the Patient Oriented Eczema Measure, Dermatitis Family Impact Questionnaire, Parental Self-Efficacy with Eczema Care Index, and Illness Perception Questionnaire - Revised. Results: Correlation analyses showed significant relationships between a child’s AD severity and caregiver illness perceptions, SE and QoL. Certain illness perceptions (consequences and emotional representations) had a greater impact on QoL than AD severity. Hierarchical regression analysis showed that AD severity, illness perceptions and SE predicted 72% of the variance in caregiver QoL. SE mediated the relationship between consequences, illness coherence, personal control, treatment control, timeline acute/chronic, identity and QoL. Conclusion: The findings support the role of illness perceptions and SE in explaining QoL in caregivers of children with AD. Interventions aimed at caregivers to treat AD in children should target both SE and illness perceptions, particularly emotional representations.