Due to the unpredictability and complexity of current work environments, work teams cannot be considered anymore as « stable entities ». They are – and have to be – considered as open, complex, dynamic, adaptable and changing over time systems. The present article offers a review of recent research in social and work psychology, in order to provide better understanding of functioning and performance factors of these dynamic teams. First, we present different concepts of dynamic teams from a variety of disciplinary fields. Then, we propose a new categorization of the features of instability faced by these teams. We have classified these features in four categories: work environment, nature of task, resources and team members. For example, team members-related instability is characterized by unclear and fluid boundaries, leading to membership changes. It is also characterized by the pursuit of divergent and conflicting goals between team members, which increases the number of task conflicts. Second, we discuss the effects of instability due to the high rate of membership changes and task conflicts in teams on their collective performance. The critical analysis of this research indicates that the instability may not be harmful, especially when some particular precautions are taken. For instance, membership change is not harmful if it is predictable and anticipated and if team members have developed transactive memory and shared social identity. Task conflict has no negative impact on performance if team members are familiar with one another and have already efficiently managed this form of conflict. Third, this review highlights that these dynamic teams can efficiently deal with the unstable environments and work if they develop two informal collaboration processes (swift trust and implicit coordination) and use some non-technical skills. Implications for management and training of dynamic teams are included. Developing training programs enabling the acquisition of non-technical skills and promoting the use of a simulation center is essential in order to help the professionals to work in dynamic teams.