In today’s dynamic marketplace, manufacturing companies are under strong pressure to introduce new products for long-term survival with their competitors. Increased competition and reduced product life cycles put force upon companies to develop new products faster. In response to these pressing needs, there should be some new approach compatible in flexible circumstances. This presentation presents a solution based on the popular Stage-Gate system, which is closely linked with virtual team approach. Virtual teams can provide a platform to advance the knowledge-base in a company and thus to reduce time-to-market. The presentation describes all the major aspects of new product development (NPD), NPD process and its relationship with virtual teams, Stage-Gate system finally presents a modified Stage-Gate system to cope up with the changing needs.