Abstract: With the escalating uncertainty of the entrepreneurial environment, the importance of recovering from setbacks and the significance of entrepreneurial team resilience has become increasingly prominent. Entrepreneurial team resilience refers to the collective capacity of a team to positively respond to adversity, effectively recover, and sustain its operations when its members encounter entrepreneurial difficulties together. In today’s rapidly changing business landscape, where risks and challenges abound, the resilience of an entrepreneurial team is crucial. It not only determines how well the team can adapt to unexpected obstacles but also shapes its long-term success and sustainability. When faced with setbacks, a resilient team is able to maintain morale, adjust strategies, and find new opportunities for growth. According to the team interaction perspective, combined with the research question of "how to build entrepreneurial team resilience and how it affects entrepreneurial growth", this study constructs a theoretical process model of entrepreneurial team resilience development in entrepreneurial project failure context. The findings of the study reveal a nuanced understanding of the development of entrepreneurial team resilience and its impact on entrepreneurial growth. In the initial stage, it becomes evident that situational utility plays a pivotal role in shaping the team’s resilience. As external situational factors and internal team dynamics intersect, they jointly facilitate the interactive evolution of entrepreneurial team resilience. This interplay highlights the importance of aligning external conditions with internal capabilities to foster resilience. In the second phase, the transformation of entrepreneurial team resilience into practical utility takes place. Specifically, the resilience of the team triggers a collective cognitive reappraisal, encouraging members to reassess challenges and opportunities from a new perspective. This cognitive shift, in turn, s collaborative action revolution, where the team works together to devise innovative solutions and strategies to drive entrepreneurial growth. Finally, in the third stage, the impact of entrepreneurial team resilience on entrepreneurial growth is manifested in two distinct outcomes: coordinated adaptation and jump development. Coordinated adaptation refers to the team’s ability to adjust its operations and strategies in response to changing market conditions and environmental pressures. On the other hand, jump development signifies a significant leap forward in the company’s growth, often achieved through the successful implementation of innovative ideas and strategies facilitated by the team’s resilience. Collectively, these findings provide a comprehensive framework for understanding how entrepreneurial team resilience evolves and how it can drive positive outcomes for the business. By fostering resilience, entrepreneurs can empower their teams to navigate challenges, seize opportunities, and ultimately achieve sustainable growth. Findings show the specific path of entrepreneurial team resilience from construction to utility transformation and then generate impact mechanism, enriching the research level of resilience in entrepreneurship field, providing inspiring references for crisis response of entrepreneurial teams. Our findings contribute to the understanding of how entrepreneurial team resilience is built from the perspective of team interaction, and clarify the specific process by which entrepreneurial team resilience translates the effectiveness of resilience into entrepreneurial growth through collective cognition and team action. This finding fully demonstrates the nature of team interaction underlying entrepreneurial team resilience and provides a comprehensive perspective for understanding the holistic development process of entrepreneurial team resilience.