Despite the clear relevance and the numerous investigations of workplace stressors for individuals to excel, such stimuli affecting team members embedded in the social context of work groups are less explored. Thus, why certain team stressors promote, while others inhibit, team performance still needs further consideration. Therefore, this study draws on the challenge-hindrance stressor framework and extends it to the team level of analysis. Moreover, this article advances this framework on the team level with two key team dynamics within the team stressors—team performance relationships, that is, team commitment and intrateam conflict. The posited hypotheses are tested on a multi-respondent sample (team-external managers, team leaders, and members) of innovation project teams. The findings not only empirically support the opposing nature of challenge and hindrance team stressors in predicting team performance, but also reveal the positive (via team commitment) and negative (via intrateam conflict) mediating pathways such team stressors take. While challenge team stressors solely pass through the positive route via team commitment, hindrance team stressors follow the negative route via intrateam conflict as well as the positive route with a reverse (i.e., negative) effect. Resulting implications are discussed.