Objective: The existing study aimed to find out the mediating role of trauma appraisal in the association of family environment and trauma reaction. Method: Sample of 510 participants, aged 18–26 (M = 20.78, SD = 2.46). Participants were selected from government and private universities and colleges of Lahore, Pakistan, and they filled out the Other Appraisal component of the Trauma Appraisal Scale, Trauma Reactions Scale, and Family Environment Scale. Results: Findings of correlation analysis suggested the interrelatedness of family environment, trauma appraisal, and trauma reactions. Mediation analysis revealed the significant mediating role of other appraisal in the association of family environment and trauma reactions. Conclusion: These results have implications for counseling of young adults experiencing traumatic events.