The positive or negative effects of relationship conflict and task conflict on performance have long been subjects of debate. While a degree of consensus has been reached regarding the negative effects of relationship conflict, research on the relationship between task conflict and performance has yielded inconsistent results, leading some researchers to call for the introduction of a contingency perspective. Following a contingency approach, this study examined the effect of team efficacy on the relationship between task conflict and team performance using empirical data collected from 79 university student project teams. The empirical results revealed that task conflict had a negative relationship with both instructor evaluations and self-evaluations. Furthermore, team efficacy was found to moderate the relationship between task conflict and team performance. The effect of task conflict on instructor evaluations showed no significant difference when team efficacy was high, whereas a significant difference emerged when team efficacy was low—specifically, instructor evaluations decreased as task conflict increased. On the other hand, the effect of task conflict on students' self-evaluations showed no significant difference when team efficacy was low, but a significant difference was observed when team efficacy was high—self-evaluations decreased as task conflict increased when team efficacy was high. Based on the research findings, implications and directions for future research were presented.