The financial industry is facing increasing competition and the need for information construction, with Project management being a key factor in success. Challenges include increasing team conflicts, lack of communication, and weak team cohesion, leading to internal turmoil and decreased project performance. To improve Project team performance, domestic commercial banks, examples such as Habib Bank Limited, are highly valuable. This paper proposes a research model based on previous theories and results on team conflict management, focusing on how conflict management methods affect team communication and cohesion, ultimately affecting team performance. The study collected data through electronic questionnaires and used SmartPLS software to evaluate the model’s reliability, validity, common method bias, and multicollinearity. The results showed that Cooperative Conflict Management can improve Project team performance, while competitive conflict management weakens it. Team cohesion mediates between cooperative conflict management and performance, and team communication mediates between cooperative conflict management and performance. The study concludes that improving the bank’s Project team performance in project management is necessary.