A transfer case is provided and includes a first output shaft driven by a powertrain and operably interconnected with a first pair of wheels, a second output shaft selectively driven by the first output shaft and operably interconnected with a second pair of wheels and a transfer gear assembly operably disposed between the first output shaft and the second output shaft for transferring drive torque from the first output shaft to the second output shaft. The transfer gear assembly includes a first transfer gear in selective drive connection with the first output shaft, a second transfer gear in meshed engagement with the first transfer gear, a third transfer gear in drive connection with the second transfer gear and the second output shaft. A clutch pack is operably disposed between the first output shaft and the first transfer gear for selectively establishing drive connection therebetween.
