PurposeThe purpose of this paper is to explore the relationship between cultural diversity in teams and team members' individual well-being. The paper further explores the relationship between social resources, social stressors, team member well-being and the influence of the type of team individuals are working in (mono- vs. multicultural), gender and individualism/collectivism (IC).Design/methodology/approachUsing data collected via an online survey, the authors analyzed 659 responses from individuals working in mono- and multicultural work teams. A theoretical model explaining the influence of social stressors, social resources, and social and demographic variables was proposed and tested using structural equation modeling.FindingsThe results indicate that members of multicultural work teams perceive significantly more social stressors and lower levels of social resources than do members of monocultural teams. Higher levels of social stressors suggest decreased psychological well-being, while social resources have an indirect positive effect on psychological well-being. Furthermore, personal characteristics, namely, individualism and gender, have direct effects on the perception of social stressors and indirect effects on team member well-being.Originality/valueThis paper demonstrates that cultural diversity in teams can influence the social stressors and resources that individual team members experience. Moreover, the pivotal role of social resources in the facilitation of team member well-being is highlighted primarily through its direct effect on social stressors and its concomitant indirect effect on well-being.