From the perspective of entrepreneurial team processes, this study examines the effect of a dynamic team environment on entrepreneurial team innovation. Through applying uncertainty reduction theory, it proposes the influence mechanism and boundary condition of the relationship between dynamic team environment and entrepreneurial team innovation. By analyzing a sample of 270 entrepreneurial teams in China, it is found that a dynamic team environment can evoke entrepreneurial team innovation via triggering team members’ agreement-seeking behavior and then promoting team knowledge integration. In addition, team centralization of decision making can weaken the relationship between agreement-seeking behavior and team knowledge integration. Our findings contribute to a better understanding of entrepreneurial teams’ reactions to dynamic environments and the multistep mechanism that transfers the impact of a dynamic team environment to entrepreneurial team innovation through team members’ reactions and team interactions.