In recent years the phenomenon of cyberloafing has become an endemic problem of concern for organizations. The ease of access to internet at the workplace, has amplified the dominance of cyberloafing as a workplace deviant behavior. In this article the authors have attempted to investigate the prevalence of the phenomenon and its effect on employees’ perceptions of potency and conflict within teams. A sample of 209 persons, with work experience, was examined through survey research method. Regression analyses and AMOS 21 was used to test the relationship between cyberloafing and aforementioned variables. The results confirmed the impact of cyberloafing on team potency (negative) and conflict (positive). The findings have significant implications for academicians and practitioners in the industry.