A system and method for selectively engaging and disengaging auxiliary equipment to avoid gear clash in a vehicle is disclosed. The system includes a transmission, a transfer case, and a transmission controller. The transmission has a plurality of gears for establishing a plurality of gear ratios. The transfer case is coupled to the transmission by an output shaft. The transmission controller is in communication with a plurality of control devices for controlling the operation of the transmission. The controller includes control logic for controlling the engagement and disengagement of the auxiliary equipment. The control logic has a first control logic for determining whether an operator has actuated a selector switch, a second control logic for actuating a torque transmitting device to engage or disengage the auxiliary equipment and avoid gear clash, a third logic for monitoring the engagement or disengagement of the auxiliary equipment, and a fourth control logic determining whether the auxiliary equipment has been engaged or disengaged.