Becoming a new parent is typically a time of great joy, yet it is also marked by significant declines in sexual and relationship functioning. Dyadic empathy, a combination of perspective taking and empathic concern for one's romantic partner, may facilitate sexual and relationship quality for new parents. The purpose of this study was to examine the associations between dyadic empathy and sexual satisfaction, relationship adjustment, and sexual desire in a sample of first-time parents. Couples (N = 255) with an infant aged three to 12 months completed an online survey assessing dyadic empathy, sexual satisfaction, relationship adjustment, and sexual desire. Data were analyzed using multilevel analyses guided by the actor-partner interdependence model. When new mothers and fathers reported greater dyadic empathy, both they and their partners reported higher sexual satisfaction and relationship adjustment. New mothers who reported higher dyadic empathy also had higher sexual desire, although when they had more empathic partners new mothers reported lower sexual desire. Results remained significant after controlling for potential challenges unique to the postpartum period (e.g., fatigue, breastfeeding), as well as relationship duration. Targeting dyadic empathy in interventions aimed at helping couples transition to parenthood may promote the maintenance of sexual and relationship well-being.