People identify with their teams. Conflict and competition between groups is a natural consequence of the process of establishing our social identity. We examined the positive consequences of interteam conflict in terms of enhancing cohesion and stimulating creativity. We also looked at the dark side of interteam competition and the biased perceptions that can prevail. Leaders who see their teams engaging in interteam competition should congratulate themselves—as this is an indication that the individuals in the team have identified strongly with their team. On the other hand, effective team leaders need to address the potential negative aspects of interteam conflict.