Due to the loss of ankle function, many people with a transtibial amputation (TTA) have difficulty maintaining balance during functional tasks. Prosthetic alignment may affect how people with TTA maintain balance as it affects ground reaction forces (GRFs) and centers of pressure. We quantified the effect of prosthetic alignment on dynamic balance during several functional tasks. Ten people with TTA and 10 controls without TTA completed tasks including walking and transitioning from a chair. Participants with TTA completed all tasks with their prescribed alignment and six shifted alignments, including ±10 mm anterior/posterior, medial/lateral, and ±20 mm in the vertical direction. For each task, we quantified dynamic balance as the range of whole-body angular momentum (H⃗_WB) and quantified trunk range of motion (ROM) and peak GRFs. Compared to controls, participants with TTA using their prescribed alignment had a greater range of H⃗_WB in the sagittal plane during walking, in all planes during sit-to-stand, and in the transverse plane during stand-to-sit. These results were associated with GRF and trunk ROM differences between participant groups. Alignment only affected the range of H⃗_WB in the frontal plane during walking. The larger range for the tall alignment coincided with a greater difference in vertical GRF between intact and amputated legs compared to other alignments. Our findings suggest that people with TTA can adapt to small, translational, alignment changes to maintain similar levels of dynamic balance during chair transitions. Future work should investigate alignment changes during other tasks and in lower functioning individuals.