This chapter examines the central role of diversity and inclusion in improving team outcomes in higher education. By leveraging the diverse perspectives, experiences, and talents of team members, colleges can foster innovation, promote collaboration, and promote academic excellence. The discussion will address key principles, strategies and practices for realizing the potential of diverse and inclusive teams, including communication, diverse leadership, intercultural competence and equity-focused initiatives. Through an analysis of case studies, best practices, and future trends, the chapter highlights the transformative impact of diverse and inclusive teams on research, teaching, and institutional culture. In addition, it explores the challenges and opportunities associated with building and maintaining diverse teams and the continued importance of diversity and inclusion as drivers of academic excellence in a rapidly changing global environment.