Abstract: An interaxle differential includes a central drive member that continuously connects an input shaft with a first output shaft, a clutch disk normally connecting the central drive member with a second output shaft, a rotational velocity responsive device operable from a deactivated position to an activated position for disengaging the clutch disk when the second output shaft overruns the first output shaft by a given value, a fail safe device for biasing the velocity responsive device toward its deactivated position, a first device for displacing the velocity responsive device toward the activated position, and an override device for selectively disengaging the clutch disk. In a second embodiment, the rear clutch disk is operable by the operator to disconnect the interaxle differential from the first output shaft, thereby to avoid the trapping of torque within the interaxle differential when the vehicle is maneuvered downhill in a turn.