An ice dispenser for cubed or crushed ice is presented in a self contained modular design that can be used for commercial and consumer applications. A two-motor system is provided for the auger and ice crusher and features a motor driven bypass gate system with a worm drive to bypass the ice crusher when cubed ice is selected. A flexible bladed paddle at the end of an auger exerts a positive force to push ice into the crusher and touches the wall of a containing duct for reduction of ice jams. The ice crusher employs a unique roller chain sprocket or timing belt and pulley system for greater flexibility in mounting and maintaining compactness. There is also provided an ice chute with two inlet paths and all of the operations are managed by electronic controls which includes monitor means sensing motor current draws to detect an ice jam and programmed control means to rotate said drivers to free an ice jam.