The team can be defined as a small group of people with common goals, synergy and joint vision. Team work and group work, however, are not synonims because each member of the group has its own goals and usually work individually to achieve them. On the other hand, in teams, individuals work together, share responsibilities and are connected with common goals and vision. Teamwork is essential in performing complex tasks, but in order to accomplish team goals individuals need to have complementary knowledge and skill. The purpose of teamwork is not to make everybody equal from the beginning, but to approach solving problems from different perspectives and to respect the different point of views. The team needs to be formed when there is a clear goal and when a task cannot be executed unless people work together. There are several phases in the team's development: the stage of formation, the confirmation phase, the storm and the stage of achievement. Successful teams go through every phase. The paper also deals with the advantages and disadvantages of team work as well as the types of teams, and verbal and non-verbal communication within the teams. As part of the paper a research, on students' perception of the importance of teamwork as well as their experience in participating in team projects was conducted.