A transfer case for a vehicle that allows shifting between AWD and two-wheel drive at any vehicle speed. The transfer case includes a center differential employing pinion and sun gears that allow a front drive shaft and a rear drive shaft to turn at different speeds to provide the all-wheel drive function. The transfer case further includes an electrically actuated synchronizer assembly that allows the speed of the front drive shaft to be synchronized to the speed of the rear drive shaft when shifting from two-wheel drive to all-wheel drive to provide the shift on the fly function. The synchronizer assembly also includes a neutral position where both the front drive shaft and the rear drive shaft are not engaged to the vehicle transmission to allow for vehicle towing.