Extensive studies suggested that parental neglect threatens children’s life satisfaction. However, little is known about the relationship and mechanism between parental neglect during the COVID-19 outbreak and life satisfaction, especially in rural areas. This study explores the relationship between parental neglect during COVID-19 and children’s life satisfaction in rural China. It further examines the mediating role of avoidant attachment and the moderating role of self-compassion. A random sample of 321 Chinese children (162 females, 159 males; Mage = 10.6, SD = 0.89) from rural communities completed scales of parental neglect during the COVID-19 pandemic, avoidant attachment, self-compassion, and life satisfaction. Results showed that parental neglect during the pandemic was negatively related to children’s life satisfaction. Moreover, avoidant attachment mediates the relationship. Specifically, parental neglect during COVID-19 was positively associated with avoidant attachment, which in turn was negatively associated with life satisfaction. In addition, self-compassion moderated avoidant attachment and life satisfaction. Specifically, avoidant attachment was negatively associated with life satisfaction only in the middle and high-level self-compassion groups. Interventions to increase parental love and attention to reduce avoidant attachment may help mitigate the adverse effects of parental neglect among rural children, especially during the pandemic.