A transfer case is a gearbox that allows a vehicle to transfer power from the engine to the drivetrain. It acts as a differential for each axle, allowing both wheels on an axle to turn at different speeds while maintaining control over them. The transfer case has several components, including gears, shafts, and actuators.
The primary purpose of a transfer case is to provide greater traction and stability than could be achieved by using only one differential in the rear end. If you're going around a corner at high speed with all four wheels locked up against each other, you'll have poor traction, and your car will likely slide out of control.
Transfer cases are also used in four-wheel drives to allow automatic shifting between two-wheel drive and four-wheel drive modes. In two-wheel-drive mode, the front axle is locked together, and both rear axles are free to spin independently. In four-wheel-drive mode, both front axles are locked together, while both rear axles are locked together.
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