Workplace gossip has long been a pervasive and intriguing communication phenomenon within organizational settings, yet its impact on group and team dynamics (i.e., coworker relationships and team performance) remains a topic of considerable interest. Drawing upon social exchange theory, this study scrutinizes the interplay between workplace gossip, coworker exchange, team performance and gender. The findings suggest that positive and negative gossip significantly influences coworker exchange, which in turn impacts team performance. Teams with stronger coworker exchange exhibit higher team performance, even in the presence of workplace gossip, and gender has no effect on these dynamics. Implications for scholars and practitioners in the supply chains and logistics industries are discussed.