BackgroundWith the rapid advancement and revolutionization of information and communication technologies, adolescents and young adults use smartphones, the internet, and social networking services more frequently, as a result, the problem of cyber-bullying sharply increases, and eventually it causes psychological issues and negative thoughts in the victims. This study aimed to examine the role of self-efficacy and parental communication in the relationship between cyber victimization and depression among adolescents and young adults in India.MethodsSecondary data analysis was performed on a cross-sectional dataset obtained from the Understanding the Lives of Adolescents and Young Adults (UDAYA) wave 2 survey. The sample included 16,292 adolescent and young adult boys and girls aged 12–23 years. Karl Pearson Correlation coefficient analysis was done to examine the correlation between outcome variable (depressive symptoms), mediator variables (self-efficacy and parental communication) and key explanatory variable (cyber victimization). Further, structural equation modeling technique was applied to examine the hypothesized pathways.ResultsAdolescents and young adults being victims of cyber-bullying [β = 0.1357, p < 0.001] and those witnessed inter-parental violence were positively [β = 0.0026, p < 0.001] correlated with depressive symptoms. Self-efficacy and parental communication were negatively related to depressive symptoms among adolescents and young adults. There was a significant positive relationship between cyber victimization [β = 0.258, p < 0.001] and depressive symptoms. Cyber victimization was positively related to self-efficacy [β = 0.043, p < 0.001] among adolescents and young adults. Self-efficacy [β= -0.150, p < 0.001] and parental communication [β=-0.261, p < 0.001] reduced depressive symptoms among the participants.ConclusionsThe findings suggest that adolescents and young adults who are victims of cyber-bully may have depressive symptoms and their mental health can be improved through the enhancement of self-efficacy and increased parental communication. Improved peer attitudes and familial support for empowering cyber victims should be taken into account while framing programs and interventions.Supplementary InformationThe online version contains supplementary material available at 10.1186/s12888-023-04841-6.