The object of this invention is directed to an improved control system and actuator for a transfer case. More particularly, this invention is directed to a hydraulic actuator and control system for a transfer case. One aspect of the present invention provides a hydraulic control system for a transfer case that includes an actuator for generating fluid pressure. The system also includes an isolation valve and a control valve in fluid communication with the actuator. The isolation valve is in a normally closed position and the control valve is in a normally open position. The system further includes a piston for applying fluid pressure to a device of the transfer case. The invention further provides a method for controlling the hydraulic pressure to a transfer case.