Agile software development and the breed of agile methodologies like XP, SCRUM, Feature Driven Development (FDD) and Dynamic System Development Method (DSDM) have gained immense popularity since 2001. The necessity of finding right skilled people, sharing resource and limitation on cost has made distributed software development indispensable. Software development today is more complex than it was 20, 10 or even 5 years ago. Companies routinely perform software development in one or more locations, testing in another location and release and packaging in yet another. This distribution of resources strains the software development infrastructure and raises security, intellectual property and auditing and compliance issues. This paper describes the problems of distributed environment, different strategy and solutions to overcome the problems of agile distributed.