This chapter discusses the concept of cross-functional teams (CFTs), highlighting their development and application, mainly in manufacturing organizations, as an essential tool for sustained performance for the business. Furthermore, it provides a valuable analysis of how CFTs have developed over the years, their importance, and benefits, particularly the essential factors that have positively influenced CFTs. Additionally, it provides a valuable analysis of the shortcomings of the functional departments and the associated conventional teams in the workplace, which are being replaced by CFTs—teams integrating different disciplines and skills, seeking greater collaboration in the workplace. In this respect, the chapter provides an evolution and the relevant research at each stage, covering various decades, beginning from 1990–2000 and highlighting the relevant research streams up to recent years. Each decade captures the critical focus of CFTs for the manufacturing industry, such setbacks as effectiveness and efficacy resulting from a lack of authoritative capacity on the part of CFT members. In the subsequent decade, increasing globalization and CFTs led to the new challenges of managing multiculturalism. In recent years, the new challenges have been the impact of the complex and novel business problems associated with technology and the associated benefits and lessons. Thus, organizations’ need for CFTs cannot be overemphasized in a competitive world. Finally, the chapter addresses the complex nature within which the CFTs operate, which differs from conventional teams. It highlights factors influencing well-functioning CFTs and some examples of organizations with benefits of CFTs in place.