To prevent an intergenerational cycle of malfunction, it is crucial to understand how mothers’ exposure to traumatic war experiences contributes to their children’s vulnerability to mental health problems. This study examined the role of maternal psychopathology and mother–child emotional availability (EA) in the association between mothers’ trauma exposure and children’s mental health problems in a sample of 222 Burundian mother–child dyads living in refugee camps in Tanzania. Maternal and child EA were assessed through recorded observations of mother–child interactions. In structured clinical interviews, mothers reported on their lifetime exposure to traumatic events and their psychopathology and both mothers and fathers reported on children’s emotional and behavioral problems. Structural equation modeling showed that mothers’ higher trauma exposure was indirectly associated with higher levels of children’s mental health problems through higher levels of maternal psychopathology. Mothers’ higher trauma exposure was also directly associated with lower maternal EA in mother–child interactions, which was in turn related to higher levels of children’s mental health problems. The findings suggest that trauma exposure independently affects mothers’ mental health and their EA, which can contribute to children’s mental health problems. Interventions aiming to reduce mothers’ psychopathology and strengthen their EA may be beneficial for children’s well-being.