<p>This study examines the influence of family ownership and ownership concentration on the risk of financial distress among Indian non-financial companies. It contributes to the Indian literature on financial distress by examining how family ownership structure and concentration shape distress risk, which has been given limited attention in existing studies. It employs secondary data on Indian non-financial firms collected from the CMIE Prowess database for 2001 to 2023. Using pooled logit models to predict the risk of financial distress, the study finds a significant negative association between family ownership and the risk of financial distress. High ownership concentration reduced the risk of financial distress, whereas multiple promoters in family firms increased it. Financial indicators, such as improved liquidity, efficiency, and better cash flow and leverage management, also lowered distress risk across firm samples. The findings suggest that family ownership with fewer promoters could enhance the financial resilience of the firm and highlight the need for strong financial management practices, particularly in liquidity management and cash flow optimisation, to mitigate distress risk. The findings also underscore the governance role of family ownership and suggest that concentrated and coordinated family control can strengthen firms’ financial resilience.</p>