Globalization has introduced the idea of virtual teams and with the aid of modern communication technology it has been on the rise. Though advantages outweigh the limitations, yet the challenges can not be overlooked. This paper dives deep into this idea and explains the various challenges virtual cultural teams face.As organizations are expanding beyond the national boundaries and the norms of business have changed rapidly, the conventional idea of working in a team has also come a long way. In the contemporary business environment, virtual teams are a usual component of the organization structure. Whether to reduce the overhead cost, access the larger talent pool and network, increase productivity and sales margin, or lower carbon footprint; virtual team is a trend that is going to stay. Virtual team is a group of individuals working together in common projects from different physical locations, supported by information technology to achieve a shared goal. Often times, virtual teams are multicultural and the cultural diversity certainly influence how the members communicate within the team. The success of the team depends on how adaptive they are to new customs and cultural differences. However, like every coin this concept also comes with its own downsides. Communication is the major challenge that virtual cultural teams face frequently, but the reasons behind that are the cultural, organizational, geographical, interpersonal, technical and skill set challenges that altogether plays a vital role. This paper is going to extensively look into these issues and probable solutions.International business have created the opportunity to work with people from different background with varied histories, cultures and socio-political beliefs. Despite having different challenges, virtual cultural teams are rather beneficial in many ways. To overcome these challenges the management should deal the cultural diversity delicately, so that the members do not suffer from lack of team cohesion and enjoy working in virtual space, resulting in a collaborative and positive work environment.