Abstract: A transfer case for a vehicle having full time four-wheel drive includes an interaxle differential connected to the output of a transmission and driving coaxial driveshafts, each connected to a different axleshaft. One of the driveshafts supports a chain sprocket driveably connected by a chain belt to a driveshaft coaxial with the input shaft and output drive shafts. The differential includes a center driving disc, a housing connected to the input, two friction disc clutches each connected to one of the output driveshafts, driven discs connected to input pressure plates associated with each of the disc clutches, a ball drive assembly for engaging and disengaging the friction disc according to the relative angular position of the pressure plates, and a coiled compression spring urging the clutches to an engaged state.