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Multilevel factor mixture modeling (MLFMM) is used to investigate unknown heterogeneity and takes into account data nesting common in educational data. However, a dearth of studies investigated the performance of parametric vs. nonparametric approaches in MLFMM. We investigate the performances of parametric vs. nonparametric MLFMM under four scenarios that would occur in real research settings through a series of Monte Carlo simulation studies. The preliminary results of Case 1 showed that using the parametric approach, when the nonparametric model was the true model, yielded unbiased estimates of factor mean difference between two latent classes but led to severe bias in class proportions and low accuracy in class assignment in some simulation conditions. We provide practical recommendations for applied researchers.