Project Management can be defined as an area of study which uses different tools and knowledge for the purpose of achieving project goals within the planned parameters (Omazić and Baljkas, 2005). In today’s ever-changing and globalized environment, there is a large chance that project teams will be heterogeneous – in terms of the team members’ cultural traits. That is why it is important to get well-acquainted with a relatively new research area that takes into consideration the cultural aspects of management – Cross Cultural Management. Cross-culturalism has many benefits and helps organizations achieve their goals, but if diversity is not managed well, they can become disadvantages. The focus of this work will be put on that other side of the work of multicultural student project teams – in the challenges they potentially bring. A quantitative empirical study has been conducted in order to explore the current challenges of working in multicutural student teams. The sample consists of 101 individuals who have studied at the University of Zagreb, Nottingham Trent University and the Lomonosov Business School and who have participated in a multicultural student project in the past three years. The research has been conducted using a questionnaire with both closed-ended and open-ended questions. After analyzing the data, key challenges of working in multicultural student project teams have been identified and categorized. Results indicate that, according to students, the biggest challenges of multicultural teamwork are: free riders, insufficient (English) language skills and differences in ambition levels and academic attitude.