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This study evaluates two latent interaction modeling methods when parcels are used as measurement indicators. A Monte Carlo study is designed to compare performance of UPI and LMS under different parceling strategies and data conditions where items are ordinal. The manipulated factors are interaction effect size, factor loadings, number of response categories, combination of item distributions across factors, and sample size. A preliminary analysis is conducted. Solutions from all replications are admissible. Results suggest that LMS performs well in estimating latent interaction effects. UPI performs slightly worse in terms of parameter estimates and coverage rates than LMS.