Abstract
This article introduces faultline theory as a valuable framework for understanding team dynamics in diverse learning environments. Drawing on existing research, the paper explains how faultlines—hypothetical dividing lines that split teams into subgroups—can affect team performance, conflicts, collaboration, and learning outcomes. It synthesizes key findings from the literature and identifies critical contextual factors, such as psychological safety and diversity climates, that influence the activation of faultlines. Teaching implications and recommendations are provided for educators to teach faultline theory effectively and construct effective teams in undergraduate and graduate management courses.