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This study explores the nuanced associations between multiple dimensions of poverty (health, education, living standards, employment and income security) and language development in early childhood, as well as the roles of family-level inputs and regional context. We analyzed a sample of 1,303 children (620 girls, aged 18-42 months) from rural regions in southwest China. Multilevel structural equation modeling revealed that language development is negatively associated with familial poverty in education, and income. Number of picture books significantly mediated these associations, while the proximity of villages to central towns was a significant moderator in the association between poverty in education and language development. The findings provide useful insights for reducing systemic poverty among children and supporting early language development.