This cross-sectional study of 1,394 children aged 12–59 months from Mexican localities with fewer than 100,000 inhabitants found that 50% had detectable blood lead levels (≥3.3 μg/dL) and 15.3% had stunted growth. Detectable blood lead was significantly associated with lower language development scores only among children with stunted growth (β = −0.40; 95% CI: −0.71, −0.10), suggesting chronic undernutrition amplifies lead's neurotoxic effects on early childhood development. These findings support lowering Mexico's blood lead reference value and targeting combined nutritional and environmental interventions to the most vulnerable children.