An ice dispensing assembly, as provided herein, may include a container, a rotatable drum, a motor, an agitator bridge, and a rotatable blade. The container may define an opening for passing ice. The rotatable may be positioned below the container. The rotatable drum may define an inner channel from a first arc point to a second arc point. The rotatable blade may be housed within the rotatable drum between the first arc point and the second arc point. The rotatable drum may be movable between a crusher position and an agitator position. The crusher position may include the rotatable blade in engagement with the rotatable drum at the first arc point while being circumferentially spaced apart from the second arc point. The agitator position may include the rotatable blade in engagement with the rotatable drum at the second arc point while being circumferentially spaced apart from the first arc point.