This study analyzes Team Emotional Intelligence (TEI) in project teams in higher education. Specifically, we tested the direct effects of TEI on team satisfaction, as well as the relationship between negative emotions that emerge during teamwork and team satisfaction, and whether this relationship is moderated by TEI. Multilevel analyses were conducted with 76 Spanish undergraduate psychology students nested in 26 teams. Results suggest that one dimension of TEI ('Other Management') was positively related to team satisfaction (direct effects). Besides, negative emotions decreased team satisfaction, particularly for teams lacking in TEI, while three dimensions of TEI ('Own Management', 'Other Awareness', and 'Other Management') attenuated the relationship between negative emotions and team satisfaction (moderating effects). These results provide empirical evidence for the positive effect of TEI at the team level on student satisfaction and its protective role against negative emotions. We discuss how universities might enhance the student experience when working in project teams (e.g., receiving educational training in TEI).