Distribution of software development is becoming more and more common in order to save the production cost and reduce the time to market. Large geographical distance, different time zones and cultural differences in distributed software development (DSD) leads to weak communication which adversely affects the project. Using agile practices for distributed development is also gaining momentum in various organizations to increase the quality and performance of the project. This paper explores the intersection of these two significant trends for software development i.e. DSD and agile. We discuss the challenges faced by geographically distributed agile teams and proven practices to address these issues, which will help in building a successful distributed team.