A transfer case for a vehicle that includes a planetary gear assembly, a clutch pack assembly, and a band and drum assembly that provide an overdrive or underdrive and direct drive in combination with a vehicle transmission. In one embodiment, an input shaft drives an outer ring gear of the planetary gear assembly and is coupled to one set of discs of the clutch assembly. A carrier of the planetary gear assembly is coupled to a rear output shaft, where the carrier supports a plurality of pinion gears. A sun gear of the planetary gear assembly is coupled to another set of discs of the clutch assembly that are coupled to the drum. When the clutch assembly is engaged, the ring gear is coupled to the sun gear for direct drive and when the band is engaged, the pinion gears and the ring gear provide underdrive.