A hybrid towel dispenser is provided that is operable in an automatic dispensing mode and a manual dispensing mode. The paper towel dispenser comprises: a rotatable drum that advances a paper towel sheet applied on the drum when the drum rotates; a one-way rotational coupling; a motor coupled to the drum by the one-way rotational coupling and automatically operable to rotate the drum; and a manual advance assembly coupled to the drum and manually operable by a user to rotate the drum. The one-way rotational coupling couples the motor to the drum such that the motor drives the drum in a first direction and does not drive the drum when the manual advance assembly is operated to rotate the drum in the first direction.