We develop the twistor theory of -structures for which the (linear) Lie algebra of the structure group contains an involution, instead of a complex structure. The twistor space of such a -structure is endowed with a field of involutions and a -invariant distribution . We study the conditions for the integrability of and for the (para-)holomorphicity of . Then we apply this theory to para-quaternionic Kähler manifolds of non-zero scalar curvature, which admit two natural twistor spaces , , such that Id. We prove that in both cases is integrable (recovering results of Blair, Davidov and Muŝkarov) and that defines a holomorphic () or para-holomorphic () contact structure. Furthermore, we determine all the solutions of the Einstein equation for the canonical one-parameter family of pseudo-Riemannian metrics on . In particular, we find that there is a unique Kähler-Einstein () or para-Kähler-Einstein () metric. Finally, we prove that any Kähler or para-Kähler submanifold of a para-quaternionic K\"ahler manifold is minimal and describe all such submanifolds in terms of complex (), respectively, para-complex () submanifolds of tangent to the contact distribution. (This is joint work with Dmitri Alekseevsky.)