Physical activity parenting (PAP) is consistently correlated with children’s physical activity (PA). Children’s perception of PAP has garnered little attention given that it mediates the relationship between PAP and child PA outcomes. This study aimed to examine 7–10-year-old children’s perspectives on PAP practices and how they relate to their motivational regulation of PA. A total of 79 children 7–10 years of age participated in 19 semi-structured focus group interviews. Through qualitative theory-guided content analysis, using frameworks of parenting dimensions and self-determination theory (SDT), we found that children’s perceptions of high responsiveness and low demandingness in PAP—according to SDT, autonomy support, involvement, and structure—were associated with satisfaction of all three psychological basic needs—autonomy, competence, and relatedness. In contrast, perceptions of high demandingness and low responsiveness in PAP, i.e., coercive control, were associated with dissatisfaction of autonomy need. However, perceptions of high demandingness and high responsiveness in PAP, specifically parental expectations and facilitation of PA, were associated with satisfaction of competence need. It seems possible to identify different types of PAP practices associated with children’s motivation for PA. Different forms of parental demandingness with differing motivational outcomes were uniquely identified from the children’s perceptions of PAP.