This paper investigates the use of student teams in engineering education. Industry representatives have stated that teamwork skills are important for engineering graduates. In fact, based on input from experts in the engineering profession as well as leaders from industry and government organizations, ABET, the premier accreditation organization for engineering programs, instituted a new set of criteria that requires engineering programs to demonstrate that their graduates have developed a number of professional skills including the ability to work effectively on multidisciplinary teams. In response to these requirements, many engineering instructors assign team homework and/or team projects. As technology becomes more readily available and as student demand for online education continues to grow, many engineering courses are being delivered via methods other than the traditional lecture in a classroom setting. This paper explores the practical considerations of using project teams in traditional on-campus courses as well as distance education courses.