Poverty and lack of decent work have been some of the grand challenges affecting the refugee population. As forced immigrants with limited networks in their host communities, refugees face the liability of foreignness (LOF). While previous literature predominantly focused on how LOF affects the post-formation startups' outcomes, our understanding of how LOF affects venture formation is limited. We focus on how LOF plays out in refugee entrepreneurship, specifically their team formation and opportunity recognition. Using an abductive methodology, we propose that LOF has a temporal effect on the team formation strategy of refugees, which changes from resource seeking to interpersonal relations. Furthermore, we posit that LOF affects the type of opportunities that refugees recognize in their environment.