Due to globalization and integration of markets projects are outsourced to international teams. Flexibility, innovation and problem-solving skills are crucial success factors in order to be competitive. For this reason many industries see the solution in having heterogeneous project teams. Dealing with human diversity in the context of institutionalization and of demographic change is becoming increasingly important. Additionally Generation Y occurs as non-negligible factor in terms of labor market. As a result of demographic change the power constellation has tranformed. Shortages of labour, an increase of competition and specific expectations of Generation Y have complicated employee retention. Diversity, Generation Y and virtual project teams challenge Project Management. The question is which tensions exists between Diversity, Generation Y and virtual project teams concerning Project Management, and how these tensions could be solved. To answer this question the relevant information of open literature of all three topics were extracted and interviews with experts were done. The interviews were analyzed and compared with the aspects of tensions between Diversity, Generation Y and virtual project teams concerning Project Management. Despite the opinion that there are no tensions, the result of the paper is that firstly there are tensions between all three topics regarding conflicts and culture. Secondly there is a tension between Generation Y, Diversity and highly standardized Project Management, due to Project Management will not be able to respond to new challenges. Proven methods will not be applicable to Generation Y. The idea of diversity, having heterogeneity to gain more flexibility and knowledge, is contrary to homogeneous Project Management, which is easier to be managed. All tensions can be overcome by situational leadership and conflict management. This will help to be able to respond to new challenges. Beside that intercultural skills and the agile methodology are recommended.