This article explores project-based cross-cultural and cross-institutional learning. Using Web 2.0 technologies, this project involved more than 240 students and eighteen academic staff from seven international universities. The focus of this article relates to a project-based learning activity named "The Gift". At each institution the students formed small local project teams that were paired with teams of students from one of the other collaborating universities. The findings suggest that the majority of students perceived this activity facilitated their learning, especially in the development of virtual teamwork and communication skills. The article discusses findings related to peer learning in relation to information and communication technologies and cross-cultural communication. It concludes by evaluating the validity of underlying assumptions. (Contains 1 table.)