Cross-cultural online collaboration has evolved as an inevitable trend that people influenced by globalization cannot neglect. The primary purpose of this study was to discover major factors contributing to productive and effective online cross-cultural collaborative learning for people from diverse cultural backgrounds with varying levels of English language proficiency. Because of the preliminary nature of this study, grounded theory (GT) methodology and data analysis were implemented. Participants included 23 American and 17 Taiwanese graduate students majoring in educational psychology. Divided into several problem-based learning (PBL) groups, they strived to collaborate solely online to finish two problem-based tasks on an online learning platform. Several major themes emerged. First, Taiwanese students' persistent apprehension about English proficiency became the major barrier to their online collaborative learning. Second, their language apprehension evolved as problem focused and task oriented; to reach their goal, however, maintaining mental perseverance was vital. Third, exercising problem-focused coping strategies accompanied by proper cultural intelligence not only facilitated their online learning performance but also accelerated the acculturation process. Fourth, American peers' encouragement and support in language and cultural knowledge played a key role in facilitating the overall success of the online cross-cultural collaboration. Finally, to verify the themes above, further empirical studies are necessary. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]